Owned, leased, and other-direct

13,796

12,784

^[2]

11,814

OPERATING COSTS AND EXPENSES

775

729

785

Reimbursed costs

11,055

^[1]

10,291

^[1]

9,405

^[1]

Depreciation, amortization, and other

148

^[1]

127

^[1]

102

^[1]

General, administrative, and other

659

^[1]

649

^[1]

582

^[1]

Costs and Expenses, Total

12,637

11,796

10,874

OPERATING INCOME

1,159

988

^[2]

940

Gains and other income

^[1]

Equity in earnings (losses)

(115)

^[1]

(120)

^[1]

(137)

^[1]

Interest income

^[1]

^[1]

(5)

^[1]

(13)

^[1]

INCOME BEFORE INCOME TAXES

1,088

897

849

Provision for income taxes

(335)

(271)

(278)

NET INCOME

$ 753

$ 626

^[2]

$ 571

EARNINGS PER SHARE-Basic

Earnings per share (in USD per share)

$ 2.60

$ 2.05

$ 1.77

EARNINGS PER SHARE-Diluted

Earnings per share (in USD per share)

$ 2.54

$ 2.00

^[2]

$ 1.72

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.
[2]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Statement of Comprehensive Income [Abstract]

Foreign currency translation adjustments

$ 753

$ 626

^[1]

$ 571

Other comprehensive (loss) income:

(41)

Other derivative instrument adjustments, net of tax

(2)

Unrealized gains on available-for-sale securities, net of tax

Reclassification of losses (gains), net of tax

(6)

Total other comprehensive (loss) income, net of tax

(26)

Comprehensive income

$ 727

$ 626

$ 575

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Amount after tax, before reclassification adjustments of gain (loss) on foreign currency translation adjustments, foreign currency transactions designated and effective as economic hedges of a net investment in a foreign entity and intra-entity foreign currency transactions that are of a long-term-investment nature.

+ References+ Details

Accounts and notes receivable, net

Amount after tax of increase (decrease) in accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges and an entity's share of an equity investee's increase (decrease) in deferred hedging gain (loss).

+ References+ Details

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified

Dec. 31, 2014

Dec. 31, 2013

Current assets

Cash and equivalents

$ 104

$ 126

1,100

^[1]

1,081

^[1]

Current deferred taxes, net

311

252

Prepaid expenses

Property and equipment, net

109

^[1]

Assets held for sale

233

350

Assets, Current, Total

1,921

1,903

1,460

1,543

Intangible assets

Goodwill And Intangible Assets, Net, Total

1,351

^[1]

1,131

^[1]

Goodwill

894

874

2,245

2,005

224

^[1]

222

^[1]

Notes receivable, net

215

142

Current portion of long-term debt

530

^[1]

647

^[1]

Other noncurrent assets

270

^[1]

332

^[1]

Total Assets

6,865

6,794

Current liabilities

324

Accounts payable

605

^[1]

557

^[1]

Accrued payroll and benefits

799

817

Liability for guest loyalty programs

677

666

Liabilities, Current, Total

655

^[1]

629

^[1]

3,060

2,675

Long-term debt

3,457

3,147

Liability for guest loyalty programs

1,657

1,475

Additional paid-in-capital

891

^[1]

912

^[1]

Shareholders’ deficit

Class A Common Stock

2,802

2,716

Retained earnings

4,286

3,837

Treasury stock, at cost

(9,223)

(7,929)

Accumulated other comprehensive loss

(70)

(44)

Stockholders' Deficit

(2,200)

(1,415)

Liabilities and Deficit, Total

$ 6,865

$ 6,794

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

OPERATING ACTIVITIES

Adjustments to reconcile to cash provided by operating activities:

$ 753

$ 626

^[1]

$ 571

Depreciation, amortization, and other

148

^[2]

127

^[2]

102

^[2]

Share-based compensation

109

116

Income taxes

224

Liability for guest loyalty program

175

Working capital changes

(120)

(137)

Net cash provided by operating activities

1,224

1,140

989

INVESTING ACTIVITIES

Capital expenditures

(411)

(296)

(437)

Dispositions

435

Loan advances

(103)

(7)

(17)

Loan collections

155

Contract acquisition costs

(6)

(16)

(15)

(65)

(61)

Acquisition of a business, net of cash acquired

(184)

(112)

(210)

Investment in debt security

(65)

Net cash used in investing activities

(13)

(39)

(65)

(313)

(519)

(585)

FINANCING ACTIVITIES

Commercial paper/Credit Facility, net

235

311

184

Issuance of long-term debt

394

345

936

Repayment of long-term debt

(7)

(407)

(370)

Issuance of Class A Common Stock

178

199

179

Dividends paid

(223)

(196)

(191)

(1,510)

(834)

(1,145)

Net cash used in financing activities

(1)

(11)

(933)

(583)

(418)

(DECREASE) INCREASE IN CASH AND EQUIVALENTS

(22)

(14)

CASH AND EQUIVALENTS, beginning of period

126

102

CASH AND EQUIVALENTS, end of period

$ 104

$ 126

$ 88

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[2]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ (DEFICIT) EQUITY (USD $)
In Millions, unless otherwise specified

Total

Common Stock

Common Class A

Additional Paid-in- Capital

Retained Earnings

Treasury Stock, at Cost

Accumulated Other Comprehensive (Loss) Income

Beginning balance at Dec. 30, 2011

$ (781)

$ 5

$ 2,513

$ 3,212

$ (6,463)

$ (48)

Beginning balance, shares at Dec. 30, 2011

333.0

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Other comprehensive income (loss)

571

Dividends

(158)

Employee stock plan issuance

236

(116)

283

Employee stock plan issuance, shares

9.1

Purchase of treasury stock, shares

(1,160)

(31.2)

Spin-off of MVW

^[1]

Ending balance at Dec. 28, 2012

(1,285)

2,585

3,509

(7,340)

(44)

Ending balance, shares at Dec. 28, 2012

310.9

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Other comprehensive income (loss)

626

^[2]

626

Dividends

(195)

Employee stock plan issuance

269

131

(103)

241

Employee stock plan issuance, shares

7.1

Purchase of treasury stock, shares

(830)

(20.0)

Ending balance at Dec. 31, 2013

(1,415)

2,716

3,837

(7,929)

(44)

Ending balance, shares at Dec. 31, 2013

298.0

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Other comprehensive income (loss)

753

(26)

Dividends

(223)

Employee stock plan issuance

211

(81)

206

Employee stock plan issuance, shares

6.1

Purchase of treasury stock, shares

(1,500)

(24.2)

Ending balance at Dec. 31, 2014

$ (2,200)

$ 5

$ 2,802

$ 4,286

$ (9,223)

$ (70)

Ending balance, shares at Dec. 31, 2014

280.0

279.9

[1]	The abbreviation MVW means Marriott Vacations Worldwide Corporation.
[2]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. (“Marriott,” and together with its subsidiaries “we,” “us,” or the “Company”). In order to make this report easier to read, we refer throughout to (i) our Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Income as our “Income Statements,” (iii) our Consolidated Balance Sheets as our “Balance Sheets,” (iv) our properties, brands, or markets in the United States and Canada as “North America” or “North American,” and (v) our properties, brands, or markets outside of the United States and Canada as “international.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Consolidated Financial Statements, unless otherwise noted.

During the 2014 first quarter, we modified the information that our President and Chief Executive Officer, who is our “chief operating decision maker” (“CODM”), reviews to be consistent with our continent structure. This structure aligns our business around geographic regions and is designed to enable us to operate more efficiently and to accelerate our worldwide growth. We changed our operating segments to reflect this continent structure and have revised our business segment information for earlier periods to conform to our new business segment presentation. See Footnote No. 16, “Business Segments.”

Preparation of financial statements that conform with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates.

The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position at fiscal year-end 2014 and fiscal year-end 2013 and the results of our operations and cash flows for fiscal years 2014, 2013, and 2012. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements.

We have made certain reclassifications to our prior year amounts to conform to our 2014 presentation. During 2014, we reclassified amounts attributable to depreciation and amortization that we previously reported under the “General, administrative, and other” and “Owned, leased, and other-direct” captions of our Income Statement to a separate “Depreciation, amortization, and other” caption. We continue to report depreciation amounts that third party owners reimburse to us under “Reimbursed costs” in our Income Statement. In the operating activities section of our Statement of Cash Flows, we reclassified depreciation that third-party owners reimburse to us from the “Depreciation, amortization, and other” caption to the “Other” caption. We also reclassified amounts from the previously presented “Working capital changes and other” caption to “Share-based compensation,” “Working capital changes,” and “Other” captions.

Fiscal Year

Beginning with our 2013 fiscal year, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 fiscal year began on December 29, 2012 (the day after the end of the 2012 fiscal year) and ended on December 31, 2013. Historically, our fiscal year was a 52-53 week fiscal year that ended on the Friday nearest to December 31. As a result, our 2014 fiscal year had three fewer days than the 2013 fiscal year. We have not restated and do not plan to restate historical results.

The table below presents each completed fiscal year we refer to in this report, the date the fiscal year ended, and the number of days in that fiscal year, and unless otherwise specified, each reference to a particular year means the fiscal year ended on the date shown below:



Fiscal Year	Fiscal Year-End Date	Number of Days	Fiscal Year	Fiscal Year-End Date	Number of Days
2014	December 31, 2014	365	2009	January 1, 2010	364
2013	December 31, 2013	368	2008	January 2, 2009	371
2012	December 28, 2012	364	2007	December 28, 2007	364
2011	December 30, 2011	364	2006	December 29, 2006	364
2010	December 31, 2010	364	2005	December 30, 2005	364

Beginning in 2014, our fiscal years are the same as the corresponding calendar year (each beginning on January 1 and ending on December 31, and containing 365 or 366 days).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2014
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Our revenues include: (1) base management and incentive management fees; (2) franchise fees (including licensing fees from MVW after the spin-off of $60 million for 2014, $61 million for 2013 and $61 million for 2012); (3) revenues from lodging properties we own or lease; and (4) cost reimbursements. Management fees are typically composed of a base fee, which is a percentage of the revenues of hotels, and an incentive fee, which is generally based on hotel profitability. Franchise fees are typically composed of initial application fees and continuing royalties generated from our franchise programs, which permit the hotel owners and operators to use certain of our brand names. Cost reimbursements include direct and indirect costs that are reimbursed to us by properties that we manage, franchise, or license. Base Management and Incentive Management Fees: We recognize base management fees as revenue when we earn them under the contracts. In interim periods and at year-end, we recognize incentive management fees that would be due as if the contracts were to terminate at that date, exclusive of any termination fees payable or receivable by us. Franchise Fee and License Fee Revenue: We recognize franchise fees and license fees as revenue in each accounting period as we earn those fees from the franchisee or licensee under the contracts. Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and when we have rendered the services. Cost Reimbursements: We recognize cost reimbursements from managed, franchised, and licensed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer and also include certain operational and administrative costs as provided for in our contracts with the owners. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income. Other Revenue: Includes other third-party licensing fees, branding fees for third-party residential sales and credit card licensing, land rental income, and other revenue. We generally recognize other revenue as services are rendered and when collection is reasonably assured. Amounts received in advance are deferred as liabilities. Real Estate Sales We reduce gains on sales of real estate by our maximum exposure to loss if we have continuing involvement with the property and do not transfer substantially all of the risks and rewards of ownership. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive bid processes. Rewards Programs Marriott Rewards and The Ritz-Carlton Rewards are our frequent guest loyalty programs. Program members earn points based on the money they spend at our hotels, purchases of timeshare interval, fractional ownership, and residential products and, to a lesser degree, through participation in affiliated partners’ programs, such as those offered by car rental and credit card companies. Members can redeem points, which we track on their behalf, for stays at most of our hotels, airline tickets, airline frequent flyer program miles, rental cars, and a variety of other awards. Points cannot be redeemed for cash. We provide Marriott Rewards and The Ritz-Carlton Rewards as marketing programs to participating properties, with the objective of operating the programs on a break-even basis to us. We sell the points for amounts that we expect will, in the aggregate, equal the costs of point redemptions and program operating costs over time. We defer revenue we receive from managed, franchised, and Marriott-owned/leased hotels and program partners. Our management and franchise agreements require that properties reimburse us currently for the costs of operating the rewards programs, including marketing, promotion, communication with, and performing member services for rewards program members. Due to the requirement that properties reimburse us for program operating costs as incurred, we recognize the related cost reimbursements revenues from properties for our rewards programs when we incur and expense such costs. We also recognize the component of revenue from program partners that corresponds to program maintenance services when we incur and expense such costs. When points are redeemed we recognize the amounts we previously deferred as revenue and the corresponding expense relating to the costs of the awards redeemed. The recorded liability related to these programs totaled $2,334 million at year-end 2014 and $2,141 million at year-end 2013. We estimate the reasonableness and the value of the future redemption obligations using statistical formulas that project timing of future point redemptions based on historical levels, including an estimate of the “breakage” for points that members will never redeem, and an estimate of the points that members will eventually redeem. A ten percent reduction in the estimate of “breakage” would have increased the estimated year-end 2014 liability by $142 million. Profit Sharing Plan We contribute to a profit sharing plan for the benefit of employees meeting certain eligibility requirements who elect to participate in the plan. Participating employees specify the percentage of salary deferred. We recognized compensation costs from profit sharing of $76 million in 2014, $75 million in 2013, and $69 million in 2012. Non-U.S. Operations The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the United States. The functional currency of our consolidated and unconsolidated entities operating outside of the United States is generally the principal currency of the economic environment in which the entity primarily generates and expends cash. We translate the financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date, and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity. We report gains and losses from currency exchange rate changes for intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from non-U.S. currency transactions, currently in operating costs and expenses, and those amounted to losses of $16 million in 2014, $5 million in 2013, and $3 million in 2012. Gains and other income attributable to currency translation adjustment losses, net of gains, from the sale or complete or substantially complete liquidation of investments was zero for both 2014 and 2013 and $1 million for 2012. Share-Based Compensation We grant share-based compensation awards at exercise prices or strike prices that equal the market price of our common stock on the date of grant. For all share-based awards, we measure compensation costs for our share-based payment transactions at fair value on the grant date, and we recognize those costs in our Financial Statements over the vesting period during which the employee provides service (“the service period”) in exchange for the award. On the grant date, we use a binomial lattice-based valuation model to estimate the fair value of each stock appreciation right and stock option granted. This valuation model uses a range of possible stock price outcomes over the term of the award, discounted back to a present value using a risk-free rate. Because of the limitations with closed-form valuation models, such as the Black-Scholes model, we have determined that this more flexible binomial model provides a better estimate of the fair value of our stock appreciation rights and stock options because it takes into account employee and non-employee director exercise behavior based on changes in the price of our stock and also allows us to use other dynamic assumptions. See Footnote No. 5, “Share-Based Compensation” for further information. Income Taxes We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events we have recognized in our Financial Statements or tax returns, using judgment in assessing future profitability and the likely future tax consequences of those events. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of our deferred tax liabilities or the valuations of our deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. For tax positions we have taken or expect to take in a tax return, we apply a more likely than not threshold, under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expense. See Footnote No. 6, “Income Taxes,” for further information. Cash and Equivalents We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents. Accounts Receivable Our accounts receivable primarily consist of amounts due from hotel owners with whom we have management and franchise agreements and include reimbursements of costs we incurred on behalf of managed and franchised properties. We generally collect these receivables within 30 days. We record an accounts receivable reserve when losses are probable, based on an assessment of historical collection activity and current business conditions. Our accounts receivable reserve was $33 million at year-end 2014 and $43 million at year-end 2013. Assets Held for Sale We consider properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and we expect the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property's value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we cease depreciation. See Footnote No. 3, “Acquisitions and Dispositions” for additional information on planned dispositions. Goodwill We assess goodwill for potential impairment at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the net assets of the reporting unit. In evaluating goodwill for impairment, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform a two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment we will recognize, if any. At year-end 2014 and year-end 2013, we concluded that it was not more likely than not that the fair value of any reporting unit was less than its carrying value. In the first step of the two-step goodwill impairment test (“Step 1”), we compare the estimated fair value of the reporting unit with its carrying value. If the estimated fair value of the reporting unit exceeds its carrying amount, no further analysis is needed. If, however, the estimated fair value of the reporting unit is less than its carrying amount, we proceed to the second step and calculate the implied fair value of the reporting unit goodwill to determine whether any impairment is required. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the unit's assets and liabilities as if the unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in the amount of that excess. In allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit, we use industry and market data, as well as knowledge of the industry and our past experience. We calculate the estimated fair value of a reporting unit using the income approach. For the income approach, we use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations. We have had no goodwill impairment charges for the last three fiscal years, and as of the date of each of the most recent Step 1 tests, the estimated fair value of each of our reporting units significantly exceeded its respective carrying amount based on our models and assumptions. A ten percent change in our estimates of future cash flows or other significant assumptions would not reduce the fair value of any of our reporting units below carrying value. Intangibles and Long-Lived Assets We assess indefinite-lived intangible assets for potential impairment and continued indefinite use at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Similar to goodwill, we first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount. If the carrying value of the asset exceeds the implied fair value, we recognize an impairment loss in the amount of that excess. We test definite-lived intangibles and long-lived asset groups for recoverability when changes in circumstances indicate that we may not be able to recover the carrying value; for example, when there are material adverse changes in projected revenues or expenses, significant under performance relative to historical or projected operating results, or significant negative industry or economic trends. We also test recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect to complete the plan within a year. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect the asset group will generate. If the comparison indicates that we will not be able to recover the carrying value of an asset group, we recognize an impairment loss for the amount by which the carrying value exceeds the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life. We calculate the estimated fair value of an intangible asset or asset group using the income approach or the market approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. Investments We may hold an equity interest in ventures established to develop or acquire and own hotel properties. These ventures are generally limited liability companies or limited partnerships. We account for investments in such entities using the cost method of accounting when we own a minimal investment and the equity method of accounting when we own more than a minimal investment. We account for investments in other ventures using the equity method of accounting when we exercise significant influence over the entities. If we do not exercise significant influence, we account for the investment using the cost method of accounting. We consolidate entities that we control. Under the accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including equity investments, loans, and guarantees, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary. We evaluate an investment for impairment when circumstances indicate that we may not be able to recover the carrying value. For example, when evaluating our ventures, we consider loan defaults, significant under-performance relative to historical or projected operating performance, or significant negative industry or economic trends. We impair investments we account for using the equity and cost methods of accounting when we determine that there has been an “other-than-temporary” decline in the venture’s estimated fair value compared to its carrying value. Additionally, a venture's commitment to a plan to sell some or all of its assets could cause us to evaluate the recoverability of the venture's individual long-lived assets and possibly the venture itself. We calculate the estimated fair value of an investment using either a market approach or an income approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. For investments in securities classified as available-for-sale, we determine the cost basis of the securities sold using specific identification, meaning that we track our securities individually. Fair Value Measurements We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Footnote No. 14, “Fair Value of Financial Instruments” for further information. We also apply the provisions of fair value measurement to various nonrecurring measurements for our financial and nonfinancial assets and liabilities. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 includes unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. Derivative Instruments We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative will be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying cash flow hedges, we record changes in fair value in other comprehensive income (“OCI”). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged items’ effect on earnings. We review the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from OCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require us to immediately recognize in earnings the gains and/or losses that we previously recorded in OCI. Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments, including cash flow hedges, net investment in non-U.S. operations hedges, fair value hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. Loan Loss Reserves We may make senior, mezzanine, and other loans to owners of hotels that we operate or franchise, generally to facilitate the development of a hotel and sometimes to facilitate brand programs or initiatives. We expect the owners to repay the loans in accordance with the loan agreements, or earlier as the hotels mature and capital markets permit. We use metrics such as loan-to-value ratios and debt service coverage, and other information about collateral and from third party rating agencies to assess the credit quality of the loan receivable, both upon entering into the loan agreement and on an ongoing basis as applicable. On a regular basis, we individually assess loans for impairment. We use internally generated cash flow projections to determine if we expect the loans to be repaid under the terms of the loan agreements. If we conclude that it is probable a borrower will not repay a loan in accordance with its terms, we consider the loan impaired and begin recognizing interest income on a cash basis. To measure impairment, we calculate the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. If the present value or the estimated collateral is less than the carrying value of the loan receivable, we establish a specific impairment reserve for the difference. If it is likely that a loan will not be collected based on financial or other business indicators, including our historical experience, our policy is to charge off the loan in the quarter in which we deem it uncollectible. Guarantees We measure and record our liability for the fair value of a guarantee on a nonrecurring basis, that is when we issue or modify a guarantee, using Level 3 internally developed inputs, as described above in this footnote under the heading “Fair Value Measurements.” We base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation. The offsetting entry for the guarantee liability depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. In most cases, when we do not forecast any funding, we amortize the liability into income on a straight-line basis over the remaining term of the guarantee. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we record a loss except to the extent that the applicable contracts provide that the advance can be recovered as a loan. Self-Insurance Programs We self-insure for certain levels of property, liability, workers’ compensation and employee medical coverage. We accrue estimated costs of these self-insurance programs at the present value of projected settlements for known and incurred but not reported claims. We use a discount rate of 2.0 percent to determine the present value of the projected settlements, which we consider to be reasonable given our history of settled claims, including payment patterns and the fixed nature of the individual settlements. We are subject to a variety of assessments for our insurance activities, including those by state guaranty funds and workers’ compensation second-injury funds. We record our liabilities for these assessments in our Balance Sheets within the other current liabilities line. These liabilities, which are not discounted, totaled $4 million at year-end 2014 and $5 million at year-end 2013. As of year-end 2014, we expect to pay the $4 million liability for assessments by the end of 2015. Legal Contingencies We are subject to various legal proceedings and claims, the outcomes of which are uncertain. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. In making such determinations we evaluate, among other things, the probability of an unfavorable outcome and, when we believe it probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances. Business Combinations We allocate the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. We recognize as goodwill the amount by which the purchase price of an acquired entity exceeds the net of the amounts assigned to the assets acquired and liabilities assumed. In determining the fair values of assets acquired and liabilities assumed, we use various recognized valuation methods including the income and market approaches. Further, we make assumptions within certain valuation techniques, including discount rates, royalty rates, and timing of future cash flows. We record the net assets and results of operations of an acquired entity in our Financial Statements from the acquisition date. We initially perform these valuations based upon preliminary estimates and assumptions by management or independent valuation specialists under our supervision, where appropriate, and make revisions as estimates and assumptions are finalized. We expense acquisition-related costs as incurred. New Accounting Standards Accounting Standards Update No. 2014-09 - “Revenue from Contracts with Customers” (“ASU No. 2014-09”) ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer or customers; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, which for us will be our 2017 first quarter. We are permitted to use the retrospective or modified retrospective method when adopting ASU No. 2014-09. We are still assessing the potential impact that ASU No. 2014-09 will have on our financial statements and disclosures.

The entire disclosure for all significant accounting policies of the reporting entity.

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ACQUISITIONS AND DISPOSITIONS	12 Months Ended
ACQUISITIONS AND DISPOSITIONS	Dec. 31, 2014
Acquisitions and Dispositions [Abstract]
Acquisitions and Dispositions	ACQUISITIONS AND DISPOSITIONS 2015 Planned Acquisition On January 27, 2015, we entered into definitive agreements to acquire the Delta Hotels and Resorts brand, management and franchise business, together with related intellectual property, from Delta Hotels Limited Partnership, a subsidiary of British Columbia Investment Management Corporation (“bcIMC”) for C$168 million (approximately $135 million at signing). We expect that the transaction, which remains subject to regulatory approval and other customary closing conditions, will close in the second quarter of 2015. At closing we expect to add 38 open hotels and resorts with over 10,000 rooms across Canada, 28 of which are managed (including 13 under new 30-year management agreements with bcIMC-affiliated entities) and 10 of which are franchised, plus five hotels under development (including one under a new 30-year management agreement with a bcIMC-affiliated entity). 2014 Acquisitions In the 2014 second quarter, we acquired the Protea Hotel Group's brands and hotel management business (“Protea Hotels”) for $193 million (ZAR 2.046 billion) in cash and provisionally recognized approximately: $184 million (ZAR 1.943 billion) in intangible assets, consisting of deferred contract acquisition costs of $91 million (ZAR 960 million), a brand intangible of $73 million (ZAR 772 million), and goodwill of $20 million (ZAR 211 million); and $9 million (ZAR 103 million) of tangible assets consisting of property and equipment, equity method investments, and other current assets at the acquisition date. Our accounting for the acquisition has not been finalized as we continue to evaluate the assumptions used in determining the fair value of the intangible assets. As part of the transaction, Protea Hospitality Holdings created an independent property ownership company that retained ownership of the hotels Protea Hospitality Holdings formerly owned, and entered into long-term management and lease agreements with us for these hotels. The property ownership company also retained a number of minority interests in other Protea-managed hotels. As a result of the transaction, we added 113 hotels (10,016 rooms) across three brands in South Africa and six other Sub-Saharan African countries to our International segment portfolio and currently manage 45 percent, franchise 39 percent, and lease 16 percent of those rooms. In the 2014 fourth quarter, we acquired a property under-construction in Brazil for $31 million (R$74 million) in cash. We have committed to fund a portion of the development of this property, as discussed in Footnote No. 7, “Commitments and Contingencies.” 2014 Dispositions and Planned Dispositions as of Year-End 2014 In the 2014 first quarter, we sold The London EDITION to a third party, received approximately $230 million in cash, and simultaneously entered into definitive agreements to sell The Miami Beach and The New York (Madison Square Park) EDITION hotels upon completion of construction to the same third party. The total sales price for the three EDITION hotels will be approximately $816 million. We completed the sale of The Miami Beach EDITION for cash proceeds of $230 million during the first quarter of 2015. We expect to sell The New York (Madison Square Park) EDITION in the first half of 2015 when we anticipate that construction will be substantially complete. We will retain long-term management agreements for each of the three hotels sold. During 2014, we evaluated the three hotels for recovery and recorded a $25 million net impairment charge, primarily attributable to The Miami Beach EDITION, in the “Depreciation, amortization, and other” caption of our Income Statements as our cost estimates exceed our total fixed sales price. We did not allocate the charge to any of our segments. In the 2014 fourth quarter, we sold a portion of The Miami Beach EDITION residences and received approximately $100 million in cash. We expect to sell the remaining units during 2015. In the 2014 fourth quarter, we sold for approximately $42 million in cash a land parcel to a third-party that agreed to develop a property. We retained certain repurchase rights in the event the buyer breaches covenants. We reclassified the property to “Other” current assets and offset this amount with a liability for the cash received. In the 2014 first quarter, we sold our right to acquire the landlord’s interest in a leased real estate property and certain attached assets of the property, consisting of $106 million (€77 million) in property and equipment and $48 million (€35 million) in liabilities. We received $62 million (€45 million) in cash and transferred $45 million (€33 million) of related obligations. We continue to operate the property under a long-term management agreement. At year-end 2014, we had $233 million in assets related to The Miami Beach EDITION hotel and residences (the hotel representing $157 million in property and equipment and $17 million in current assets) classified in the “Assets held for sale” caption of the Balance Sheet and $26 million in liabilities (the hotel representing $14 million) classified in liabilities held for sale in the “Accrued expenses and other” caption of the Balance Sheet. We did not classify The New York (Madison Square Park) EDITION assets and liabilities as held for sale because the hotel is under construction and not yet available for immediate sale in its present condition. At year-end 2013, we had $350 million in assets and $61 million in liabilities held for sale, classified as described in the preceding 2014 discussion. The London EDITION consisted of $244 million in assets and $13 million in liabilities held for sale and the leased real estate landlord interest represented $106 million (€77 million) in assets and $48 million (€35 million) in liabilities. 2013 Acquisition In 2013, we acquired a North American Full-Service managed property for $115 million in cash. We plan to renovate the hotel in 2015 with the intent to highlight our brand strategies. 2012 Acquisitions In 2012, we acquired the Gaylord Hotels brand and hotel management company from Gaylord Entertainment Company (subsequently renamed Ryman Hospitality Properties, Inc.) (“Ryman Hospitality”) for $210 million in cash and recognized $210 million in intangible assets, primarily reflecting deferred contract acquisition costs. Ryman Hospitality continues to own the Gaylord hotels, which we manage under the Gaylord brand under long-term management agreements. This transaction added four hotels and approximately 7,800 rooms to our North American Full-Service segment, and included our entering into management agreements for several attractions at the Gaylord Opryland in Nashville, consisting of a showboat, a golf course, and a saloon. As part of the transaction, we also assumed management of another hotel owned by Ryman Hospitality, the Inn at Opryland, with approximately 300 rooms. In 2012, we acquired land for $32 million in cash that we expect will be developed into a hotel. Earlier in 2012, we also acquired land and a building we plan to develop into a hotel for $160 million in cash. In conjunction with the latter acquisition, we had also made a cash deposit of $6 million late in 2011. 2012 Dispositions In 2012, we completed the sale of our equity interest in a North American Limited-Service joint venture (formerly two joint ventures which were merged before the sale), and we amended certain provisions of the management agreements for the underlying hotel portfolio. As a result of this transaction, we received cash proceeds of $96 million, including $30 million of proceeds which is refundable by us over the term of the management agreements if the hotel portfolio does not meet certain quarterly hotel performance thresholds. To the extent the hotel portfolio meets the quarterly hotel performance thresholds, we will recognize the $30 million of proceeds over the remaining term of the management agreements as base fee revenue. In 2012, we recognized a gain of $41 million, which consisted of: (1) $20 million of gain that we deferred in 2005 because we retained the equity interest following the original sale of land to one of the joint ventures and because there were contingencies for the 2005 transaction that expired with this sale; and (2) $21 million of gain on the sale of the equity interest. We also recognized base management fee revenue totaling $7 million, most of which we had deferred in earlier periods, but which we earned in conjunction with the sale. We also sold our ExecuStay corporate housing business in 2012. Neither the sales price nor the gain we recognized was material to our results of operations and cash flows. The revenues, results of operations, assets, and liabilities of our ExecuStay business also were not material to our financial position, results of operations or cash flows for any of the periods presented, and accordingly we did not reflect ExecuStay as a discontinued operation.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share:



	2014		2013		2012
(in millions, except per share amounts)
Computation of Basic Earnings Per Share
Net income	$	753	$	626	$	571
Weighted average shares outstanding	289.9		305.0		322.6
Basic earnings per share	$	2.60	$	2.05	$	1.77
Computation of Diluted Earnings Per Share
Net income	$	753	$	626	$	571
Weighted average shares outstanding	289.9		305.0		322.6
Effect of dilutive securities
Stock option and appreciation right plans	3.1		4.0		6.1
Deferred stock incentive plans	0.7		0.8		0.9
Restricted stock units	3.1		3.2		3.3
Shares for diluted earnings per share	296.8		313.0		332.9
Diluted earnings per share	$	2.54	$	2.00	$	1.72

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We have excluded the following antidilutive stock options and stock appreciation rights in our calculation of diluted earnings per share because their exercise prices were greater than the average market prices for the applicable periods:


(a)	for 2014, zero options and stock appreciation rights;


(b)	for 2013, 0.4 million options and stock appreciation rights; and


(c)	for 2012, 1.0 million options and stock appreciation rights.

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The entire disclosure for earnings per share.

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SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2014

Share-Based Compensation

SHARE-BASED COMPENSATION

Under our Stock and Cash Incentive Plan (the “Stock Plan”), we award: (1) stock options (our “Stock Option Program”) to purchase our Class A Common Stock (our “common stock”); (2) stock appreciation rights (“SARs”) for our common stock (our “SAR Program”); (3) restricted stock units (“RSUs”) of our common stock; and (4) deferred stock units. We also issue performance-based RSUs (“PSUs”) to named executive officers and some of their direct reports under the Stock Plan. We grant awards at exercise prices or strike prices that equal the market price of our common stock on the date of grant.

During 2014, we granted 1.9 million RSUs, 0.3 million PSUs, 0.3 million SARs, and 0.1 million stock options.

We recorded share-based compensation expense for award grants of $109 million in 2014, $116 million in 2013, and $94 million in 2012. Deferred compensation costs for unvested awards totaled $114 million at year-end 2014 and $108 million at year-end 2013. As of year-end 2014, we expect to recognize these deferred compensation expenses over a weighted average period of two years.

We present the tax benefits and costs resulting from the exercise or vesting of share-based awards as financing cash flows. The exercise of share-based awards resulted in tax benefits of $92 million in 2014, $121 million in 2013, and $71 million in 2012.

We received cash from the exercise of stock options of $178 million in 2014, $199 million in 2013, and $179 million in 2012.

RSUs

We issue RSUs under the Stock Plan to certain officers and key employees, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We recognize compensation expense for RSUs over the service period equal to the fair market value of the stock units on the date of issuance. Upon vesting, RSUs convert to shares of our common stock which we distribute from treasury shares. In addition to being subject to pro-rata annual vesting conditioned on continued service consistent with the standard form of RSUs, PSUs are also subject to the satisfaction of certain performance conditions based on achievement of pre-established targets for EBITDA, RevPAR Index, room openings, and net administrative expense over, or at the end of, a three-year vesting period. The following information on RSUs includes PSUs.

We had deferred compensation costs for RSUs of approximately $109 million at year-end 2014 and $102 million at year-end 2013. The weighted average remaining term for RSU grants outstanding at year-end 2014 was two years.

The following table provides additional information on RSUs for the last three fiscal years:



	2014		2013		2012
Share-based compensation expense (in millions)	$	98	$	101	$	83
Weighted average grant-date fair value (per RSU)	$	52	$	38	$	35
Aggregate intrinsic value of converted and distributed RSUs (in millions)	$	144	$	125	$	91

The following table presents the 2014 changes in our outstanding RSU grants and the associated weighted average grant-date fair values:



	Number of RSUs (in millions)		Weighted Average Grant-Date Fair Value (per RSU)
Outstanding at year-end 2013	6.8		$	35
Granted during 2014 ⁽¹⁾	2.2		52
Distributed during 2014	(2.8	)	31
Forfeited during 2014	(0.2	)	39
Outstanding at year-end 2014	6.0		$	42


⁽¹⁾	Includes 0.3 million PSUs granted to named executive officers.

Stock Options and SARs

We may grant employee stock options to officers and key employees at exercise prices or strike prices that equal the market price of our common stock on the grant date. Non-qualified options generally expire 10 years after the grant date, except those we issued from 1990 through 2000, which expire 15 years after their grant date. Most stock options under the Stock Option Program may be exercised in cumulative installments of one quarter at the end of each of the first four years following the grant date.

We recognized compensation expense for employee stock options of $2 million in 2014, $2 million in 2013, and $1 million in 2012. We had deferred compensation costs for employee stock options of $2 million at year-end 2014 and $2 million at year-end 2013. When holders exercise stock options we issue shares from treasury shares.

The following table presents the 2014 changes in our outstanding Stock Option Program awards and the associated weighted average exercise prices:



	Number of Stock Options (in millions)		Weighted Average Exercise Price (per Option)
Outstanding at year-end 2013	4.6		$	22
Granted during 2014	0.1		53
Exercised during 2014	(4.0	)	20
Forfeited during 2014	—		—
Outstanding at year-end 2014	0.7		$	36

The following table presents the stock options issued under the Stock Option Program awards outstanding and exercisable at year-end 2014:



					Outstanding				Exercisable
Range of Exercise Prices					Number of Stock Options (in millions)	Weighted Average Exercise Price (per Option)		Weighted Average Remaining Life (in years)	Number of Stock Options (in millions)	Weighted Average Exercise Price (per Option)		Weighted Average Remaining Life (in years)
$	13	to	$	22	—	$	17	1	—	$	17	1
23		to	35		0.5	32		5	0.3	30		4
36		to	53		0.2	45		8	—	41		6
$	13	to	$	53	0.7	$	36	6	0.3	$	32	4

The following table presents the number of stock options we granted in the last three fiscal years and the associated weighted average grant-date fair values and weighted average exercise prices:



	2014		2013		2012
Options granted	75,861		96,960		255,761
Weighted average grant-date fair value (per option)	$	17	$	13	$	12
Weighted average exercise price (per option)	$	53	$	39	$	35

The following table presents the intrinsic value (the amount by which the market price of the underlying common stock exceeded the aggregate exercise price of the stock option) of all outstanding stock options and of exercisable stock options at year-end 2014 and 2013:



($ in millions)	2014		2013
Outstanding stock options	$	28	$	126
Exercisable stock options	$	14	$	121

Stock options exercised during the last three years had total intrinsic values of approximately $160 million in 2014, $131 million in 2013, and $158 million in 2012.

We may grant SARs to officers and key employees (“Employee SARs”) at exercise prices or strike prices equal to the market price of our common stock on the grant date. Employee SARs expire ten years after the grant date and both vest and may be exercised in cumulative installments of one quarter at the end of each of the first four years following the grant date. We may grant SARs to directors (“Director SARs”) at exercise prices or strike prices equal to the market price of our common stock on the grant date. Director SARs generally expire ten years after the date of grant and vest upon grant; however, they are generally not exercisable until one year after grant. On exercise of SARs, holders receive the number of shares of our common stock equal to the number of SARs that are being exercised multiplied by the quotient of (a) the stock price on the date of exercise minus the exercise price, divided by (b) the stock price on the date of exercise.

We recognized compensation expense for Employee SARs and Director SARs of $8 million in 2014, $12 million in 2013, and $9 million in 2012. We had deferred compensation costs related to SARs of approximately $3 million in 2014 and $4 million in 2013. Upon the exercise of SARs, we issue shares from treasury shares.

The following table presents the 2014 changes in our outstanding SARs and the associated weighted average exercise prices:



	Number of SARs (in millions)		Weighted Average Exercise Price
Outstanding at year-end 2013	6.4		$	32
Granted during 2014	0.3		53
Exercised during 2014	(0.9	)	31
Forfeited during 2014	—		—
Outstanding at year-end 2014	5.8		$	33

The following tables show the number of Employee SARs and Director SARs we granted in the last three fiscal years, the associated weighted average exercise prices, and the associated weighted average grant-date fair values:



Employee SARs	2014		2013		2012
Employee SARs granted (in millions)	0.3		0.7		1.0
Weighted average exercise price (per SAR)	$	53	$	39	$	35
Weighted average grant-date fair value (per SAR)	$	17	$	13	$	12
Director SARs	2014		2013		2012
Director SARs granted	3,277		5,903		5,915
Weighted average exercise price (per SAR)	$	59	$	44	$	39
Weighted average grant-date fair value (per SAR)	$	22	$	15	$	14

Outstanding SARs had total intrinsic values of $264 million at year-end 2014 and $111 million at year-end 2013. Exercisable SARs had total intrinsic values of $197 million at year-end 2014 and $82 million at year-end 2013. SARs exercised during 2014 had total intrinsic values of $33 million and SARs exercised in 2013 had total intrinsic values of $6 million.

We used the following assumptions to determine the fair value of the SARs and stock options we granted to employees and non-employee directors in 2014 and 2013, and to employees in 2012:



	2014		2013		2012
Expected volatility	29 - 30%		30 - 31%		31	%
Dividend yield	1.14	%	1.17	%	1.01	%
Risk-free rate	2.2 - 2.8%		1.8 - 1.9%		1.7 - 2.0%
Expected term (in years)	6 - 10		8 - 10		8 - 10

In making these assumptions, we base expected volatility on the historical movement of the Company's stock price. We base risk-free rates on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, which we convert to a continuously compounded rate. The dividend yield assumption takes into consideration both historical levels and expectations of future payout. The weighted average expected terms for SARs and options are an output of our valuation model which utilizes historical data in estimating the period of time that the SARs and options are expected to remain unexercised. We calculate the expected terms for SARs and options for separate groups of retirement eligible and non-retirement eligible employees. Our valuation model also uses historical data to estimate exercise behaviors, which includes determining the likelihood that employees will exercise their SARs and options before expiration at a certain multiple of stock price to exercise price. In recent years, non-employee directors have generally exercised grants in their last year of exercisability.

Deferred Stock Units

We also issue deferred stock units to non-employee directors. These non-employee directors deferred stock units vest within one year and are distributed upon election.

The following table presents the share-based compensation expense, the number of deferred stock units we granted, the weighted average grant-date fair value, and the aggregate intrinsic value for the last three fiscal years for non-employee director deferred stock units:



	2014		2013		2012
Share-based compensation expense (in millions)	$	1.2	$	1.4	$	1.2
Non-employee director deferred stock units granted	21,000		31,000		27,000
Weighted average grant-date fair value (per share)	$	59	$	44	$	39
Aggregate intrinsic value of shares distributed (in millions)	$	0.8	$	0.7	$	1.0

We had 268,000 outstanding non-employee deferred stock units at year-end 2014, and 261,000 outstanding at year-end 2013. The weighted average grant-date fair value of those outstanding deferred stock units was $30 for 2014 and $22 for 2013.

Other Information

At year-end 2014, we had authorized 27 million shares under the Stock Plan, including 6 million shares under the Stock Option Program and the SAR Program.

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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INCOME TAXES

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The components of our earnings before income taxes for the last three fiscal years consisted of:



($ in millions)	2014		2013		2012
U.S.	$	808	$	630	$	631
Non-U.S.	280		267		218
	$	1,088	$	897	$	849

Our provision for income taxes for the last three fiscal years consists of:



($ in millions)		2014			2013			2012
Current	-U.S. Federal	$	(224	)	$	(139	)	$	6
	-U.S. State	(43		)	(17		)	(8		)
	-Non-U.S.	(47		)	(44		)	(34		)
		(314		)	(200		)	(36		)

Deferred	-U.S. Federal	(21		)	(68		)	(211		)
	-U.S. State	(5		)	(10		)	(30		)
	-Non-U.S.	5			7			(1		)
		(21		)	(71		)	(242		)
		$	(335	)	$	(271	)	$	(278	)

Our current tax provision does not reflect the following benefits attributable to us for the vesting or exercise of employee share-based awards: $89 million in 2014, $66 million in 2013, and $76 million in 2012. The preceding table includes tax credits of $4 million in 2014, $3 million in 2013, and $3 million in 2012. We had a tax provision applicable to other comprehensive income of $5 million in 2014, $2 million in 2013, and $5 million in 2012.

We have made no provision for U.S. income taxes or additional non-U.S. taxes on the cumulative unremitted earnings of non-U.S. subsidiaries ($894 million as of year-end 2014). We consider the earnings for substantially all non-U.S. subsidiaries to be indefinitely reinvested. These earnings could become subject to additional taxes if the non-U.S. subsidiaries dividend or loan those earnings to us or to a U.S. affiliate or if we sell our interests in the non-U.S. subsidiaries. We cannot practically estimate the amount of additional taxes that might be payable on the unremitted earnings.

Unrecognized Tax Benefits

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2012 to the end of 2014:



($ in millions)	Amount
Unrecognized tax benefit at beginning of 2012	$	39
Change attributable to withdrawal of tax positions previously taken or expected to be taken	12
Change attributable to tax positions taken during the current period	(20		)
Decrease attributable to lapse of statute of limitations	(2		)
Unrecognized tax benefit at year-end of 2012	29
Change attributable to tax positions taken during the current period	8
Decrease attributable to settlements with taxing authorities	(2		)
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end of 2013	34
Change attributable to tax positions taken during the current period	3
Decrease attributable to settlements with taxing authorities	(27		)
Decrease attributable to lapse of statute of limitations	—
Unrecognized tax benefit at year-end of 2014	$	10

These unrecognized tax benefits reflect the following year-over-year changes: (1) a $24 million decrease in 2014, largely attributable to the favorable settlements reached with taxing authorities on both federal and international positions taken in prior years; (2) a $5 million increase in 2013, primarily due to a U.S. federal tax issue, offset by a settlement with international taxing authorities; and (3) $10 million decrease in 2012, primarily reflecting the changes attributable to settlements with taxing authorities and positions taken during 2012.

Our unrecognized tax benefit balances included $7 million at year-end 2014, $12 million at year-end 2013, and $13 million at year-end 2012 of tax positions that, if recognized, would impact our effective tax rate.

The IRS has examined our federal income tax returns, and we have settled all issues for tax years through 2009. We participate in the IRS Compliance Assurance Program, which accelerates IRS examination of key transactions with the goal of resolving any issues before the taxpayer files its return. As a result, the audits of our open tax years 2010 through 2013 are complete, while the 2014 tax year audit is currently ongoing. Various foreign, state, and local income tax returns are also under examination by the applicable taxing authorities. It is reasonably possible that we will resolve two state apportionment issues during the next 12 months for which we have an unrecognized tax balance of $4 million. One issue is currently under audit, and the second issue is pending an expected court ruling in 2015. The unrecognized tax balance of $4 million is partly offset by a related deferred tax asset.

Deferred Income Taxes

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss and tax credit carry-forwards. We state those balances at the enacted tax rates we expect will be in effect when we actually pay or recover the taxes. Deferred income tax assets represent amounts available to reduce income taxes we will pay on taxable income in future years. We evaluate our ability to realize these future tax deductions and credits by assessing whether we expect to have sufficient future taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings, and available tax planning strategies to utilize these future deductions and credits. We establish a valuation allowance when we no longer consider it more likely than not that a deferred tax asset will be realized.

We had the following total deferred tax assets and liabilities at year-end 2014 and year-end 2013:



($ in millions)	At Year-End 2014		At Year-End 2013
Deferred tax assets	$	803	$	878
Deferred tax liabilities	—		(12		)
Net deferred taxes	$	803	$	866

The following table details the composition of our net deferred tax balances at year-end 2014 and year-end 2013:



($ in millions) Balance Sheet Caption	At Year-End 2014			At Year-End 2013
Current deferred taxes, net	$	311		$	252
Deferred taxes, net	530			647
Accrued expenses and other	(22		)	(19		)
Other noncurrent liabilities	(16		)	(14		)
Net deferred taxes	$	803		$	866

The following table presents the tax effect of each type of temporary difference and carry-forward that gave rise to a significant portion of our deferred tax assets and liabilities as of year-end 2014 and year-end 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Employee benefits	$	347		$	340
Net operating loss carry-forwards	257			293
Tax credits	182			273
Reserves	55			61
Frequent guest program	47			30
Self-insurance	24			23
Deferred income	20			23
Other, net	16			(12		)
Deferred taxes	948			1,031
Less: valuation allowance	(145		)	(165		)
Net deferred taxes	$	803		$	866

At year-end 2014, we had approximately $28 million of tax credits that expire through 2024 and $153 million of tax credits that do not expire. We recorded $10 million of net operating loss benefits in 2014 and $14 million in 2013. At year-end 2014, we had approximately $1.2 billion of primarily state and foreign net operating losses, of which $561 million expire through 2034.

Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate

The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years:



	2014		2013		2012
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
U.S. state income taxes, net of U.S. federal tax benefit	2.7		2.6		2.6
Nondeductible expenses	0.2		0.5		0.3
Non-U.S. income	(4.8	)	(5.7	)	(3.9	)
Change in valuation allowance	(0.4	)	0.3		(0.2	)
Tax credits	(0.3	)	(0.4	)	(0.4	)
Other, net	(1.6	)	(2.1	)	(0.7	)
Effective rate	30.8	%	30.2	%	32.7	%

We paid cash for income taxes, net of refunds of $172 million in 2014 and $77 million in 2013, and we received $17 million of cash for income tax refunds, net of payments in 2012.

Commitments and Contingencies Disclosure [Abstract]

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Guarantees

We issue guarantees to certain lenders and hotel owners, chiefly to obtain long-term management contracts. The guarantees generally have a stated maximum funding amount and a term of four to ten years. The terms of guarantees to lenders generally require us to fund if cash flows from hotel operations are inadequate to cover annual debt service or to repay the loan at the end of the term. The terms of the guarantees to hotel owners generally require us to fund if the hotels do not attain specified levels of operating profit. Guarantee fundings to lenders and hotel owners are generally recoverable as loans repayable to us out of future hotel cash flows and/or proceeds from the sale of hotels. We also enter into project completion guarantees with certain lenders in conjunction with hotels that we or our joint venture partners are building.

We show the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for guarantees for which we are the primary obligor at year-end 2014 in the following table:



($ in millions) Guarantee Type	Maximum Potential Amount of Future Fundings		Liability for Guarantees
Debt service	$	49	$	14
Operating profit	86		40
Other	14		1
Total guarantees where we are the primary obligor	$	149	$	55

Our liability at year-end 2014 for guarantees for which we are the primary obligor is reflected in our Balance Sheet as $4 million of “Accrued expenses and other” and $51 million of “Other noncurrent liabilities.”

Our guarantees listed in the preceding table include $16 million of debt service guarantees, $26 million of operating profit guarantees, and $1 million of other guarantees that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur.

The table above does not include a “put option,” which is not currently in effect, that we entered into in the 2014 first quarter to provide credit support to lenders for a construction loan. We entered into that agreement in conjunction with signing a management agreement for the Times Square EDITION hotel in New York City (currently projected to open in 2017), and the hotel's ownership group obtaining acquisition financing and entering into agreements concerning future construction financing for the mixed use project (which includes both the hotel and adjacent retail space). Under the agreement, we granted the lenders the right, upon an uncured event of default by the hotel owner under, and an acceleration of, the mortgage loan, to require us to purchase the hotel component of the property for $315 million during the first two years after opening. Because we would acquire the building upon exercise of the put option, we have not included the amount in the table above. The lenders may extend this period for up to three years to complete foreclosure if the loan has been accelerated and certain other conditions are met. We do not expect that the lenders will exercise this put option. We have no ownership interest in this hotel.

The preceding table does not include the following guarantees:

•

$83 million of guarantees for Senior Living Services lease obligations of $61 million (expiring in 2019) and lifecare bonds of $22 million (estimated to expire in 2019), for which we are secondarily liable. Sunrise Senior Living, Inc. (“Sunrise”) is the primary obligor on both the leases and $3 million of the lifecare bonds; HCP, Inc., as successor by merger to CNL Retirement Properties, Inc. (“CNL”), is the primary obligor on $19 million of the lifecare bonds. Before we sold the Senior Living Services business in 2003, these were our guarantees of obligations of our then consolidated Senior Living Services subsidiaries. Sunrise and CNL have indemnified us for any fundings we may be called upon to make under these guarantees. Our liability for these guarantees had a carrying value of $3 million at year-end 2014. In conjunction with our consent to the 2011 extension of certain lease obligations until 2018, Sunrise provided us with $1 million of cash collateral and an $85 million letter of credit issued by Key Bank to secure our continued exposure under the lease guarantees during the extension term and certain other obligations of Sunrise. The letter of credit balance was $71 million at year-end 2014, which decreased as a result of lease payments made and lifecare bonds redeemed. During the extension term, Sunrise agreed to make an annual payment to us from the cash flow of the continuing lease facilities, subject to a $1 million annual minimum. In the 2013 first quarter, Sunrise merged with Health Care REIT, Inc. (“HCN”), and Sunrise's management business was acquired by an entity formed by affiliates of Kohlberg Kravis Roberts & Co. LP, Beecken Petty O'Keefe & Co., Coastwood Senior Housing Partners LLC, and HCN. In April of 2014, HCN and Revera Inc., a private provider of senior living services, acquired Sunrise's management business.

•

Lease obligations, for which we became secondarily liable when we acquired the Renaissance Hotel Group N.V. in 1997, consisting of annual rent payments of approximately $6 million and total remaining rent payments through the initial term of approximately $26 million. The majority of these obligations expire by the end of 2020. CTF Holdings Ltd. (“CTF”) had originally provided €35 million in cash collateral in the event that we are required to fund under such guarantees, approximately $3 million (€2 million) of which remained at year-end 2014. Our exposure for the remaining rent payments through the initial term will decline to the extent that CTF obtains releases from the landlords or these hotels exit the system. Since the time we assumed these guarantees, we have not funded any amounts, and we do not expect to fund any amounts under these guarantees in the future.

•

Certain guarantees and commitments relating to the timeshare business, which were outstanding at the time of the 2011 Timeshare spin-off and for which we became secondarily liable as part of the spin-off. These MVW payment obligations, for which we currently have a total exposure of $12 million, relate to two guarantees. MVW has indemnified us for these obligations. At year-end 2014, we expect these obligations will expire as follows: $4 million in 2019 and $8 million (11 million Singapore Dollars) in 2022. We have not funded any amounts under these obligations, and do not expect to do so in the future. Our liability for these obligations had a carrying value of $1 million at year-end 2014.

•

A guarantee for a lease, originally entered into in 2000, for which we became secondarily liable in 2012 as a result of our sale of the ExecuStay corporate housing business to Oakwood Worldwide (“Oakwood”). Oakwood has indemnified us for the obligations under this guarantee. Our total exposure at year-end 2014 for this guarantee is $6 million in future rent payments through the end of the lease in 2019. Our liability for this guarantee had a carrying value of $1 million at year-end 2014.

In addition to the guarantees described in the preceding paragraphs, in conjunction with financing obtained for specific projects or properties owned by joint ventures in which we are a party, we may provide industry standard indemnifications to the lender for loss, liability, or damage occurring as a result of the actions of the other joint venture owner or our own actions.

Commitments

In addition to the guarantees we note in the preceding paragraphs, at year-end 2014, we had the following commitments outstanding, which are not recorded on our Balance Sheet:

•

A commitment to invest up to $8 million of equity for a non-controlling interest in a partnership that plans to purchase North American full-service and limited-service properties, or purchase or develop hotel-anchored mixed-use real estate projects. We expect to fund $1 million of this commitment in 2015. We do not expect to fund the remaining $7 million of this commitment, which expires in 2016.


•	A commitment to invest up to $23 million of equity for non-controlling interests in a partnership that plans to purchase or develop limited-service properties in Asia. We expect to fund this commitment as follows: $3 million in 2015 and $6 million in 2016. We do not expect to fund the remaining $14 million of this commitment prior to the end of the commitment period in 2016.


•	A commitment, with no expiration date, to invest up to $11 million in a joint venture for development of a new property. We expect to fund this commitment in 2015.


•	A commitment to invest $2 million in the renovation of a leased hotel. We expect to fund this commitment by the end of 2015.


•	A commitment to invest $26 million (R$69 million) for the development of a property. We expect to fund this commitment as follows: $25 million (R$66 million) in 2015 and $1 million (R$3 million) in 2016.

•

We have a right and under certain circumstances an obligation to acquire our joint venture partner’s remaining interests in two joint ventures over the next six years at a price based on the performance of the ventures. In conjunction with this contingent obligation, we advanced $18 million (€15 million) in deposits, $13 million (€11 million) of which is remaining. The amounts on deposit are refundable to the extent we do not acquire our joint venture partner’s remaining interests.

•

Various commitments to purchase information technology hardware, software, and accounting, finance, and maintenance services in the normal course of business totaling $186 million. We expect to fund these commitments as follows: $66 million in 2015, $41 million in 2016, $39 million in 2017, and $40 million thereafter. The majority of these commitments will be recovered through cost reimbursement charges to properties in our system.


•	Several commitments aggregating $32 million with no expiration date and which we do not expect to fund.


•	A commitment to invest up to $10 million under certain circumstances for additional mandatorily redeemable preferred equity ownership interest in an entity that owns three hotels. We have not yet determined the amount or timing of any potential funding of this commitment, which expires in 2015, subject to annual extensions through 2018.


•	A $9 million loan commitment that we extended to the owner of a property to cover the cost of renovation shortfalls which we expect to fund in the 2015 first quarter. The commitment will expire at the end of the 2016 second quarter.

Letters of Credit

At year-end 2014, we had $87 million of letters of credit outstanding (all outside the Credit Facility), the majority of which were for our self-insurance programs. Surety bonds issued as of year-end 2014, totaled $153 million, the majority of which federal, state and local governments requested in connection with our self-insurance programs.

Legal Proceedings

On January 19, 2010, several former Marriott employees (the “plaintiffs”) filed a putative class action complaint against us and the Stock Plan (the “defendants”), alleging that certain equity awards of deferred bonus stock granted to the plaintiffs and other current and former employees for fiscal years 1963 through 1989 are subject to vesting requirements under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that are in certain circumstances more rapid than those set forth in the awards. The action was brought in the United States District Court for the District of Maryland (Greenbelt Division), and Dennis Walter Bond Sr. and Michael P. Steigman were the remaining named plaintiffs. Class certification was denied, and on January 16, 2015, the court granted Marriott’s motion for summary judgment and dismissed the case. Plaintiffs have filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit.

In March 2012, the Korea Fair Trade Commission (“KFTC”) obtained documents from two of our managed hotels in Seoul, Korea in connection with an investigation which we believe is focused on pricing of hotel services within the Seoul region. Since then, the KFTC has conducted additional fact-gathering at those two hotels and also has collected information from another Marriott managed hotel located in Seoul. We understand that the KFTC also has sought documents from numerous other hotels in Seoul and other parts of Korea that we do not operate, own or franchise. We have not yet received a complaint or other legal process. We are cooperating with this investigation.

The entire disclosure for commitments and contingencies.

+ References+ Details

LEASES

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Leases

LEASES

We have summarized below our future obligations under operating leases at year-end 2014:



($ in millions)	Minimum Lease Payments
Fiscal Year
2015	$	129
2016	121
2017	114
2018	99
2019	86
Thereafter	528
Total minimum lease payments where we are the primary obligor	$	1,077

Most leases have initial terms of up to 20 years and contain one or more renewal options, generally for five- or 10-year periods. These leases generally provide for minimum rentals plus additional rentals based on the operating performance of the leased property. The total minimum lease payments above include $233 million of obligations of our consolidated subsidiaries that are non-recourse to us.

The following table details the composition of rent expense for operating leases for the last three years:



($ in millions)	2014		2013		2012
Minimum rentals	$	143	$	159	$	188
Additional rentals	64		56		62
	$	207	$	215	$	250

In conjunction with the sale of our right to acquire the landlord’s interest in a leased real estate property and certain attached assets of the property early in the 2014 first quarter, we reclassified $46 million of the $51 million originally classified in the “Long-term debt” caption to liabilities held for sale in the “Accrued expenses and other” caption of the accompanying Balance Sheet at year-end 2013. See Footnote No. 3, “Acquisitions and Dispositions” for more information.

Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract]

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References+ Details

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

12 Months Ended

Dec. 31, 2014

Self-Insurance Reserve for Losses and Loss Adjustment Expenses

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table summarizes the activity in our self-insurance reserve for losses and loss adjustment expenses as of year-end 2014 and 2013:



($ in millions)	2014			2013
Balance at beginning of year	$	362		$	342
Less: reinsurance recoverable	(5		)	(5		)
Net balance at beginning of year	357			337
Incurred related to:
Current year	126			116
Prior years	(2		)	8
Total incurred	124			124
Paid related to:
Current year	(24		)	(25		)
Prior years	(77		)	(79		)
Total paid	(101		)	(104		)
Net balance at end of year	380			357
Add: reinsurance recoverable	4			5
Balance at end of year	$	384		$	362

Our provision for incurred losses relating to the current year increased by $10 million over 2013 primarily due to an increase in medical benefit costs and growth in business activity. Our provision for incurred losses relating to prior years decreased by $2 million in 2014 and increased by $8 million in 2013 as a result of changes in estimates from insured events from prior years due to changes in underwriting experience and frequency and severity trends. Our year-end 2014 self-insurance reserve of $384 million consisted of a current portion of $120 million and noncurrent portion of $264 million. Our year-end 2013 self-insurance reserve of $362 million consisted of a current portion of $120 million and noncurrent portion of $242 million.

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

We provide detail on our long-term debt balances at year-end 2014 and 2013 in the following table:



($ in millions)	At Year-End 2014			At Year-End 2013
Senior Notes:
Series G Notes, interest rate of 5.8%, face amount of $316, maturing November 10, 2015 (effective interest rate of 6.6%)⁽¹⁾	$	314		$	312
Series H Notes, interest rate of 6.2%, face amount of $289, maturing June 15, 2016 (effective interest rate of 6.3%)⁽¹⁾	289			289
Series I Notes, interest rate of 6.4%, face amount of $293, maturing June 15, 2017 (effective interest rate of 6.5%)⁽¹⁾	293			292
Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%)⁽¹⁾	596			595
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%)⁽¹⁾	349			349
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%)⁽¹⁾	348			348
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%)⁽¹⁾	397			—
Commercial paper, average interest rate of 0.4% at December 31, 2014	1,072			834
$2,000 Credit Facility	—			—
Other	123			180
	3,781			3,199
Less current portion classified in:
Accrued expenses and other (liabilities held for sale)	—			(46		)
Current portion of long-term debt	(324		)	(6		)
	$	3,457		$	3,147


⁽¹⁾	Face amount and effective interest rate are as of year-end 2014.

All of our long-term debt is recourse to us but unsecured. We paid cash for interest, net of amounts capitalized, of $79 million in 2014, $83 million in 2013, and $83 million in 2012.

In the 2014 fourth quarter, we issued $400 million aggregate principal amount of 3.1 percent Series N Notes due 2021 (the “Series N Notes”). We received net proceeds of approximately $394 million from the offering, after deducting the underwriting discount and estimated expenses. We will pay interest on the Series N Notes on April 15 and October 15 of each year, commencing on April 15, 2015.

In the 2013 third quarter, we issued $350 million aggregate principal amount of 3.4 percent Series M Notes due 2020 (the “Series M Notes”). We received net proceeds of approximately $345 million from the offering, after deducting the underwriting discount and estimated expenses. We pay interest on the Series M Notes on April 15 and October 15 of each year, commencing on April 15, 2014.

We issued the Series M and the Series N Notes under an indenture dated as of November 16, 1998 with The Bank of New York Mellon, as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank), as trustee. We may redeem each series, in whole or in part, at our option, under the terms provided in the applicable form of Note.

In the 2013 first quarter, we made a $411 million cash payment of principal and interest to retire, at maturity, all of our outstanding Series J Notes.

We are party to a multicurrency revolving credit agreement (the “Credit Facility”) that provides for $2,000 million of aggregate borrowings to support general corporate needs, including working capital, capital expenditures, and letters of credit. The Credit Facility expires on July 18, 2018. The availability of the Credit Facility also supports our commercial paper program. Borrowings under the Credit Facility generally bear interest at LIBOR (the London Interbank Offered Rate) plus a spread, based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate also based on our public debt rating. While any outstanding commercial paper borrowings and/or borrowings under our Credit Facility generally have short-term maturities, we classify the outstanding borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis.

We show future principal payments (net of unamortized discounts) for our debt in the following table:



Debt Principal Payments (net of unamortized discounts) ($ in millions)	Amount
2015	$	324
2016	297
2017	301
2018	1,082
2019	606
Thereafter	1,171
Balance at year-end 2014	$	3,781

INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

INTANGIBLE ASSETS AND GOODWILL

The following table details the composition of our acquired intangible assets at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Definite-lived Intangible Assets
Contract acquisition costs and other	$	1,735		$	1,550
Accumulated amortization	(461		)	(423		)
	$	1,274		$	1,127
Indefinite-lived Intangible Assets
Brands	77			4
Total Intangible Assets	$	1,351		$	1,131

We capitalize both direct and incremental costs that we incur to acquire management, franchise, and license agreements. We amortize these costs on a straight-line basis over the initial term of the agreements, ranging from 15 to 30 years. Our amortization expense totaled $64 million in 2014, $68 million in 2013, and $54 million in 2012. We estimate that our aggregate amortization expense for each of the next five fiscal years will be as follows: $58 million for 2015; $58 million for 2016; $58 million for 2017; $58 million for 2018; and $58 million for 2019.

The following table details the carrying amount of our goodwill at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Goodwill	$	948		$	928
Accumulated impairment losses	(54		)	(54		)
	$	894		$	874

Property, Plant and Equipment [Abstract]

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

Property and Equipment

PROPERTY AND EQUIPMENT

The following table presents the composition of our property and equipment balances at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Land	$	457		$	535
Buildings and leasehold improvements	781			786
Furniture and equipment	775			789
Construction in progress	365			338
	2,378			2,448
Accumulated depreciation	(918		)	(905		)
	$	1,460		$	1,543

We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. Interest we capitalized as a cost of property and equipment totaled $33 million in 2014, $31 million in 2013, and $27 million in 2012. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (three to 40 years), and we amortize leasehold improvements over the shorter of the asset life or lease term. Our gross depreciation expense totaled $135 million in 2014, $107 million in 2013, and $93 million in 2012 (of which $51 million in 2014, $48 million in 2013, and $45 million in 2012 we included in reimbursed costs). Fixed assets attributed to operations located outside the United States were $291 million in 2014 and $238 million in 2013.

See Footnote No. 3, “Acquisitions and Dispositions” for information on a $25 million impairment charge we recorded in 2014 on three EDITION hotels in the “Depreciation, amortization, and other” caption of our Income Statements.

Fair Value of Financial Instruments

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Notes Receivable

NOTES RECEIVABLE

The following table presents the composition of our notes receivable balances (net of reserves and unamortized discounts) at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Senior, mezzanine, and other loans	$	242		$	178
Less current portion	(27		)	(36		)
	$	215		$	142

We classify notes receivable due within one year as current assets in the caption “Accounts and notes receivable, net” in our Balance Sheets. We did not have any past due notes receivable amounts at the end of either 2014 or 2013. In 2014, we provided an $85 million mezzanine loan (net of a $15 million discount) to an owner in conjunction with entering into a franchise agreement for an International property. The unamortized discounts for our notes receivable were $25 million at year-end 2014 and $12 million at year-end 2013.

The following table presents the expected future principal payments (net of reserves and unamortized discounts) as well as interest rates and unamortized discounts for our notes receivable as of year-end 2014:



Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions)	Amount
2015	$	27
2016	72
2017	2
2018	3
2019	1
Thereafter	137
Balance at year-end 2014	$	242
Weighted average interest rate at year-end 2014	6.1		%
Range of stated interest rates at year-end 2014	0 - 9.0%

Senior, Mezzanine, and Other Loans

Generally, all of the loans we make have similar characteristics in that they are loans to owners and operators of hotels and hospitality properties. We reflect interest income for “Senior, mezzanine, and other loans” in the “Interest income” caption in our Income Statements. At year-end 2014, our recorded investment in impaired “Senior, mezzanine, and other loans” was $63 million. We had a $50 million notes receivable reserve representing an allowance for credit losses, leaving $13 million of our investment in impaired loans, for which we had no related allowance for credit losses. At year-end 2013, our recorded investment in impaired “Senior, mezzanine, and other loans” was $99 million, and we had a $90 million notes receivable reserve representing an allowance for credit losses, leaving $9 million of our investment in impaired loans, for which we had no related allowance for credit losses. Our average investment in impaired “Senior, mezzanine, and other loans” totaled $81 million during 2014, $96 million during 2013, and $94 million during 2012.

The following table summarizes the activity for our “Senior, mezzanine, and other loans” notes receivable reserve for 2012, 2013, and 2014:



($ in millions)	Notes Receivable Reserve
Balance at year-end 2011	$	78
Additions	2
Reversals	(1		)
Write-offs	(1		)
Transfers and other	1
Balance at year-end 2012	79
Reversals	(2		)
Transfers and other	13
Balance at year-end 2013	90
Write-offs	(45		)
Transfers and other	5
Balance at year-end 2014	$	50

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We show the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table:



	At Year-End 2014						At Year-End 2013
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Senior, mezzanine, and other loans	$	215		$	214		$	142		$	145
Marketable securities and other debt securities	44			44			111			111
Total noncurrent financial assets	$	259		$	258		$	253		$	256

Senior Notes	$	(2,272	)	$	(2,370	)	$	(2,185	)	$	(2,302	)
Commercial paper	(1,072		)	(1,072		)	(834		)	(834		)
Other long-term debt	(108		)	(122		)	(123		)	(124		)
Other noncurrent liabilities	(57		)	(57		)	(50		)	(50		)
Total noncurrent financial liabilities	$	(3,509	)	$	(3,621	)	$	(3,192	)	$	(3,310	)

We estimate the fair value of our senior, mezzanine, and other loans, including the current portion, by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs.

We carry our marketable securities at fair value. Our marketable securities include debt securities of the U.S. Government, its sponsored agencies and other U.S. corporations invested for our self-insurance programs, as well as shares of a publicly traded company, which we value using directly observable Level 1 inputs. The carrying value of these marketable securities at year-end 2014 was $44 million.

In the 2013 second quarter, we received $22 million in net cash proceeds for the sale of a portion of our shares of a publicly traded company (with a cost basis of $14 million at the date of sale) and recognized an $8 million gain in the “Gains and other income” caption of our Income Statements. This gain included recognition of unrealized gains that we previously recorded in other comprehensive income. See Footnote No. 15, “Comprehensive Income and Shareholders' (Deficit) Equity” for additional information on our reclassification of these unrealized gains from accumulated other comprehensive income.

In the 2013 second quarter, we acquired a $65 million mandatorily redeemable preferred equity ownership interest in an entity that owns three hotels that we manage. We account for this investment as a debt security (with a cost of $77 million at year-end 2014, including accrued interest income), and have classified it as a current asset as of year-end 2014. Based on qualitative and quantitative analyses, we concluded that the entity in which we invested is a variable interest entity because it is capitalized primarily with debt. We did not consolidate the entity because we do not have the power to direct the activities that most significantly impact the entity's economic performance. Inclusive of our contingent future funding commitment, our maximum exposure to loss at year-end 2014 is $87 million. This security matures in 2015. We do not intend to sell this security and it is not more likely than not that we will be required to sell the investment before recovery of the amortized cost basis, which may be at maturity.

We estimate the fair value of our other long-term debt, including the current portion and excluding leases, using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. We determine the fair value of our senior notes using quoted market prices, which are directly observable Level 1 inputs. As we note in Footnote No. 10, “Long-Term Debt,” even though our commercial paper borrowings generally have short-term maturities of 30 days or less, we classify outstanding commercial paper borrowings as noncurrent based on our ability and intent to refinance them on a long-term basis. As we are a frequent issuer of commercial paper, we use pricing from recent transactions as Level 2 inputs in estimating fair value. At year-end 2014 and year-end 2013, we determined that the carrying value of our commercial paper approximated its fair value due to the short maturity. Our other noncurrent liabilities largely consist of guarantees. As we note in the “Guarantees” caption of Footnote No. 2, “Summary of Significant Accounting Policies,” we measure our liability for guarantees at fair value on a nonrecurring basis that is when we issue or modify a guarantee, using Level 3 internally developed inputs. At year-end 2014 and year-end 2013, we determined that the carrying values of our guarantee liabilities approximated their fair values based on Level 3 inputs.

See the “Fair Value Measurements” caption of Footnote No. 2, “Summary of Significant Accounting Policies” for more information on the input levels we use in determining fair value.

Comprehensive Income and Shareholders' (Deficit) Equity

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

COMPREHENSIVE INCOME AND SHAREHOLDERS’ (DEFICIT) EQUITY

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

COMPREHENSIVE INCOME AND SHAREHOLDERS' (DEFICIT) EQUITY

The following table details our accumulated other comprehensive (loss) income activity for 2014, 2013, and 2012:



($ in millions)	Foreign Currency Translation Adjustments			Other Derivative Instrument Adjustments ⁽¹⁾			Unrealized Gains (Losses) on Available-For-Sale Securities ⁽²⁾			Accumulated Other Comprehensive Loss
Balance at year-end 2011	$	(37	)	$	(18	)	$	7		$	(48	)
Other comprehensive income (loss) before reclassifications	4			(2		)	—			2
Amounts reclassified from accumulated other comprehensive loss	1			1			—			2
Net other comprehensive income (loss)	5			(1		)	—			4
Balance at year-end 2012	$	(32	)	$	(19	)	$	7		$	(44	)
Other comprehensive income (loss) before reclassifications	1			—			5			6
Amounts reclassified from accumulated other comprehensive loss	—			—			(6		)	(6		)
Net other comprehensive income (loss)	1			—			(1		)	—
Balance at year-end 2013	$	(31	)	$	(19	)	$	6		$	(44	)
Other comprehensive (loss) income before reclassifications	(41		)	8			5			(28		)
Amounts reclassified from accumulated other comprehensive loss	—			2			—			2
Net other comprehensive (loss) income	(41		)	10			5			(26		)
Balance at year-end 2014	$	(72	)	$	(9	)	$	11		$	(70	)


⁽¹⁾	We present the portions of other comprehensive income (loss) before reclassifications that relate to other derivative instrument adjustments net of zero deferred taxes for 2014 and 2013, and deferred tax benefits of $1 million for 2012.


⁽²⁾	We present the portions of other comprehensive income (loss) before reclassifications that relate to unrealized gains (losses) on available-for-sale securities net of deferred taxes of $3 million for 2014, $2 million for 2013 and $4 million for 2012.

The following table details the effect on net income of amounts we reclassified out of accumulated other comprehensive loss for 2014:



($ in millions)	Amounts Reclassified from Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss Components	2014			Income Statement Line(s) Item Affected
Other derivative instrument adjustments
Gains (losses) on cash flow hedges:
Foreign exchange contracts	$	1		Franchise fees
Interest rate contracts	(5		)	Interest expense
	(4		)	Income before income taxes
	2			Provision for income taxes
	$	(2	)	Net income

Our restated certificate of incorporation authorizes 800 million shares of our common stock, with a par value of $.01 per share and 10 million shares of preferred stock, without par value. At year-end 2014, we had 280 million of these authorized shares of our common stock and no preferred stock outstanding.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

We are a diversified global lodging company. During the 2014 first quarter, we modified the information that our President and Chief Executive Officer, who is our CODM, reviews to be consistent with our continent structure. This structure aligns our business around geographic regions and is designed to enable us to operate more efficiently and to accelerate our worldwide growth. As a result of modifying our reporting information, we revised our operating segments to eliminate our former Luxury segment, which we allocated between our existing North American Full-Service operating segment, and the following four new operating segments: Asia Pacific, Caribbean and Latin America, Europe, and Middle East and Africa.

Although our North American Full-Service and North American Limited-Service segments meet the applicable accounting criteria to be reportable business segments, our four new operating segments do not meet the criteria for separate disclosure as reportable business segments. Accordingly, we combined our four new operating segments into an “all other” category which we refer to as “International” and have revised our business segment information for earlier periods to conform to our new business segment presentation.

Our three business segments include the following principal brands:


•	North American Full-Service, which includes The Ritz-Carlton, EDITION, JW Marriott, Autograph Collection Hotels, Renaissance Hotels, Marriott Hotels, and Gaylord Hotels located in the United States and Canada;


•	North American Limited-Service, which includes AC Hotels by Marriott, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn & Suites, and TownePlace Suites properties, located in the United States and Canada, and, before its sale in the 2012 second quarter, our Marriott ExecuStay corporate housing business; and


•	International, which includes The Ritz-Carlton, Bulgari Hotels & Resorts, EDITION, JW Marriott, Autograph Collection Hotels, Renaissance Hotels, Marriott Hotels, Marriott Executive Apartments, AC Hotels by Marriott, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn & Suites, TownePlace Suites, Protea Hotels, and Moxy Hotels located outside the United States and Canada.

We evaluate the performance of our business segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, or indirect general, administrative, and other expenses. We allocate gains and losses, equity in earnings or losses from our joint ventures, and direct general, administrative, and other expenses to each of our segments. “Other unallocated corporate” represents a portion of our revenues, general, administrative, and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. It also includes license fees we receive from our credit card programs and license fees from MVW. Our CODM monitors assets for the consolidated company but does not use assets by business segment when assessing performance or making business segment resource allocations.

Revenues



($ in millions)	2014		2013		2012
North American Full-Service Segment	$	8,323	$	7,978	$	7,276
North American Limited-Service Segment	2,962		2,583		2,456
International Segment	2,255		1,957		1,794
Total segment revenues ⁽¹⁾	13,540		12,518		11,526
Other unallocated corporate	256		266		288
	$	13,796	$	12,784	$	11,814


⁽¹⁾	Revenues attributed to operations located outside the United States were $2,518 million in 2014, $2,149 million in 2013, and $1,912 million in 2012.

Net Income



($ in millions)	2014			2013			2012
North American Full-Service Segment	$	524		$	490		$	442
North American Limited-Service Segment	574			479			472
International Segment	295			228			251
Total segment profits ⁽¹⁾	1,393			1,197			1,165
Other unallocated corporate	(220		)	(203		)	(196		)
Interest expense and interest income	(85		)	(97		)	(120		)
Income taxes	(335		)	(271		)	(278		)
	$	753		$	626		$	571


⁽¹⁾	Segment profits attributed to operations located outside the United States were $327 million in 2014, $269 million in 2013, and $283 million in 2012. The 2014 segment profits consisted of segment profits of $99 million from Asia Pacific, $95 million from Europe, $74 million from the Caribbean and Latin America, $32 million from Canada, and $27 million from the Middle East and Africa.

Depreciation and Amortization



($ in millions)	2014		2013		2012
North American Full-Service Segment	$	52	$	57	$	46
North American Limited-Service Segment	22		21		16
International Segment	42		42		33
Total segment depreciation and amortization	116		120		95
Other unallocated corporate ⁽¹⁾	32		7		7
	$	148	$	127	$	102


⁽¹⁾	Includes a $25 million net impairment charge we recorded in 2014 on three EDITION hotels. See Footnote No. 3, “Acquisitions and Dispositions” for more information.

As a result of the changes to our operating segments discussed above, in the 2014 first quarter we reallocated goodwill among our affected reporting units based on the relative fair value of each remaining or newly identified reporting unit. We also determined that the estimated fair value of each reporting unit exceeded its carrying amount. The following table presents the reclassification of the goodwill we previously associated with our former Luxury segment to our North American Full-Service and International segments. The table also reflects goodwill added as a result of our acquisition of the Protea Hotel Group's brands and hotel management business in the 2014 second quarter. See Footnote No. 3, “Acquisitions and Dispositions” for more information.

Goodwill



($ in millions)	North American Full-Service Segment		North American Limited-Service Segment			International Segment		Total Goodwill
Year-end 2012 balance:
Goodwill	$	392	$	125		$	411	$	928
Accumulated impairment losses	—		(54		)	—		(54		)
	$	392	$	71		$	411	$	874
Year-end 2013 balance:
Goodwill	$	392	$	125		$	411	$	928
Accumulated impairment losses	—		(54		)	—		(54		)
	$	392	$	71		$	411	$	874
Year-end 2014 balance:
Goodwill	$	392	$	125		$	431	$	948
Accumulated impairment losses	—		(54		)	—		(54		)
	$	392	$	71		$	431	$	894

Capital Expenditures



($ in millions)	2014		2013		2012
North American Full-Service Segment	$	251	$	145	$	257
North American Limited-Service Segment	5		8		19
International Segment	87		93		96
Total segment capital expenditures	343		246		372
Other unallocated corporate	68		50		65
	$	411	$	296	$	437

Related Party Transactions

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-Name Accounting Standards Codification

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-Name Accounting Standards Codification

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-Publisher FASB

-Name Accounting Standards Codification

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-Section 50

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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 280

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-Section 50

-Paragraph 33

-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

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-Name Accounting Standards Codification

-Topic 280

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

+ Details

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2014

RELATED PARTY TRANSACTIONS

Equity Method Investments

We have equity method investments in entities that own properties for which we provide management and/or franchise services and receive fees. We also have equity method investments in entities that provide management and/or franchise services to hotels and receive fees. In addition, in some cases we provide loans, preferred equity, or guarantees to these entities. Undistributed earnings attributable to our equity method investments represented approximately $3 million of our consolidated retained earnings at year-end 2014.

The following tables present financial data resulting from transactions with these related parties:

Income Statement Data



($ in millions)	2014			2013			2012
Base management fees	$	17		$	17		$	26
Incentive management fees	6			1			5
Owned, leased, and other revenue	1			1			3
Cost reimbursements	226			236			315
Total revenue	$	250		$	255		$	349
Reimbursed costs	$	(226	)	$	(236	)	$	(315	)
Depreciation, amortization, and other	(2		)	(2		)	(2		)
General, administrative, and other	(2		)	(3		)	2
Gains and other income	—			—			43
Interest expense	—			—			1
Interest income	5			4			3
Equity in earnings (losses)	6			(5		)	(13		)

Balance Sheet Data



($ in millions)	At Year-End 2014			At Year-End 2013
Current assets
Accounts and notes receivable, net	$	26		$	22
Other	1			—
Intangible assets
Contract acquisition costs and other	20			20
Equity and cost method investments	210			207
Deferred taxes, net	13			16
Other noncurrent assets	19			16
Current liabilities
Accounts payable	(10		)	(4		)
Accrued expenses and other	(20		)	(9		)
Other noncurrent liabilities	(3		)	(2		)

Summarized information for the entities in which we have equity method investments is as follows:

Income Statement Data



($ in millions)	2014		2013		2012
Sales	$	752	$	727	$	902
Net income (loss)	$	38	$	11	$	(4	)

Balance Sheet Summary



($ in millions)	At Year-End 2014		At Year-End 2013
Assets (primarily comprised of hotel real estate managed by us)	$	1,499	$	1,832
Liabilities	$	1,287	$	1,482

Quarterly Financial Information Disclosure [Abstract]

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

RELATIONSHIP WITH MAJOR CUSTOMER	12 Months Ended
RELATIONSHIP WITH MAJOR CUSTOMER	Dec. 31, 2014
Relationship with Major Customer Disclosure [Abstract]
Relationship With Major Customer	RELATIONSHIP WITH MAJOR CUSTOMER Host Hotels & Resorts, Inc., formerly known as Host Marriott Corporation, and its affiliates (“Host”) owned or leased 61 lodging properties at year-end 2014, 66 lodging properties at year-end 2013, and 124 lodging properties at year-end 2012 that we operated under long-term agreements. Over the last three years, we recognized revenues, including cost reimbursements revenue, of $1,927 million in 2014, $2,016 million in 2013, and $2,246 million in 2012 from those lodging properties, and included those revenues in our North American Full-Service, North American Limited-Service, and International segments. Host is also a partner in certain unconsolidated partnerships that own lodging properties that we operate under long-term agreements. Host was affiliated with nine such properties at year-end 2014, ten such properties at year-end 2013, and ten such properties at year-end 2012. We recognized revenues, including cost reimbursements revenue, of $106 million in 2014, $87 million in 2013, and $75 million in 2012 from those lodging properties, and included those revenues in our North American Full-Service and International segments.

SUPPLEMENTARY DATA - QUARTERLY FINANCIAL DATA – UNAUDITED

12 Months Ended

Dec. 31, 2014

Supplementary Data - Quarterly Financial Data

SUPPLEMENTARY DATA

QUARTERLY FINANCIAL DATA – UNAUDITED



($ in millions, except per share data)	2014
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	3,293	$	3,484	$	3,460	$	3,559	$	13,796
Operating income	$	254	$	316	$	298	$	291	$	1,159
Net income	$	172	$	192	$	192	$	197	$	753
Diluted earnings per share	$	0.57	$	0.64	$	0.65	$	0.68	$	2.54



($ in millions, except per share data)	2013 ⁽²⁾
	First Quarter ⁽¹⁾		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	3,142	$	3,263	$	3,160	$	3,219	$	12,784
Operating income	$	226	$	279	$	245	$	238	$	988
Net income	$	136	$	179	$	160	$	151	$	626
Diluted earnings per share	$	0.43	$	0.57	$	0.52	$	0.49	$	2.00


⁽¹⁾	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.


⁽²⁾	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

Intangibles and Long-Lived Assets

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

Fiscal Year



Fiscal Year	Fiscal Year-End Date	Number of Days	Fiscal Year	Fiscal Year-End Date	Number of Days
2014	December 31, 2014	365	2009	January 1, 2010	364
2013	December 31, 2013	368	2008	January 2, 2009	371
2012	December 28, 2012	364	2007	December 28, 2007	364
2011	December 30, 2011	364	2006	December 29, 2006	364
2010	December 31, 2010	364	2005	December 30, 2005	364

Beginning in 2014, our fiscal years are the same as the corresponding calendar year (each beginning on January 1 and ending on December 31, and containing 365 or 366 days).

Revenue Recognition

Our revenues include: (1) base management and incentive management fees; (2) franchise fees (including licensing fees from MVW after the spin-off of $60 million for 2014, $61 million for 2013 and $61 million for 2012); (3) revenues from lodging properties we own or lease; and (4) cost reimbursements. Management fees are typically composed of a base fee, which is a percentage of the revenues of hotels, and an incentive fee, which is generally based on hotel profitability. Franchise fees are typically composed of initial application fees and continuing royalties generated from our franchise programs, which permit the hotel owners and operators to use certain of our brand names. Cost reimbursements include direct and indirect costs that are reimbursed to us by properties that we manage, franchise, or license.

Base Management and Incentive Management Fees: We recognize base management fees as revenue when we earn them under the contracts. In interim periods and at year-end, we recognize incentive management fees that would be due as if the contracts were to terminate at that date, exclusive of any termination fees payable or receivable by us.

Franchise Fee and License Fee Revenue: We recognize franchise fees and license fees as revenue in each accounting period as we earn those fees from the franchisee or licensee under the contracts.

Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and when we have rendered the services.

Cost Reimbursements: We recognize cost reimbursements from managed, franchised, and licensed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer and also include certain operational and administrative costs as provided for in our contracts with the owners. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income.

Other Revenue: Includes other third-party licensing fees, branding fees for third-party residential sales and credit card licensing, land rental income, and other revenue. We generally recognize other revenue as services are rendered and when collection is reasonably assured. Amounts received in advance are deferred as liabilities.

Real Estate Sales

We reduce gains on sales of real estate by our maximum exposure to loss if we have continuing involvement with the property and do not transfer substantially all of the risks and rewards of ownership. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive bid processes.

Rewards Programs

Marriott Rewards and The Ritz-Carlton Rewards are our frequent guest loyalty programs. Program members earn points based on the money they spend at our hotels, purchases of timeshare interval, fractional ownership, and residential products and, to a lesser degree, through participation in affiliated partners’ programs, such as those offered by car rental and credit card companies. Members can redeem points, which we track on their behalf, for stays at most of our hotels, airline tickets, airline frequent flyer program miles, rental cars, and a variety of other awards. Points cannot be redeemed for cash. We provide Marriott Rewards and The Ritz-Carlton Rewards as marketing programs to participating properties, with the objective of operating the programs on a break-even basis to us. We sell the points for amounts that we expect will, in the aggregate, equal the costs of point redemptions and program operating costs over time.

We defer revenue we receive from managed, franchised, and Marriott-owned/leased hotels and program partners. Our management and franchise agreements require that properties reimburse us currently for the costs of operating the rewards programs, including marketing, promotion, communication with, and performing member services for rewards program members. Due to the requirement that properties reimburse us for program operating costs as incurred, we recognize the related cost reimbursements revenues from properties for our rewards programs when we incur and expense such costs. We also recognize the component of revenue from program partners that corresponds to program maintenance services when we incur and expense such costs. When points are redeemed we recognize the amounts we previously deferred as revenue and the corresponding expense relating to the costs of the awards redeemed.

The recorded liability related to these programs totaled $2,334 million at year-end 2014 and $2,141 million at year-end 2013. We estimate the reasonableness and the value of the future redemption obligations using statistical formulas that project timing of future point redemptions based on historical levels, including an estimate of the “breakage” for points that members will never redeem, and an estimate of the points that members will eventually redeem. A ten percent reduction in the estimate of “breakage” would have increased the estimated year-end 2014 liability by $142 million.

Profit Sharing Plan

We contribute to a profit sharing plan for the benefit of employees meeting certain eligibility requirements who elect to participate in the plan. Participating employees specify the percentage of salary deferred.

Non-U.S. Operations

The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the United States. The functional currency of our consolidated and unconsolidated entities operating outside of the United States is generally the principal currency of the economic environment in which the entity primarily generates and expends cash. We translate the financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date, and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity. We report gains and losses from currency exchange rate changes for intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from non-U.S. currency transactions, currently in operating costs and expenses, and those amounted to losses of $16 million in 2014, $5 million in 2013, and $3 million in 2012.

Share-Based Compensation

We grant share-based compensation awards at exercise prices or strike prices that equal the market price of our common stock on the date of grant. For all share-based awards, we measure compensation costs for our share-based payment transactions at fair value on the grant date, and we recognize those costs in our Financial Statements over the vesting period during which the employee provides service (“the service period”) in exchange for the award.

On the grant date, we use a binomial lattice-based valuation model to estimate the fair value of each stock appreciation right and stock option granted. This valuation model uses a range of possible stock price outcomes over the term of the award, discounted back to a present value using a risk-free rate. Because of the limitations with closed-form valuation models, such as the Black-Scholes model, we have determined that this more flexible binomial model provides a better estimate of the fair value of our stock appreciation rights and stock options because it takes into account employee and non-employee director exercise behavior based on changes in the price of our stock and also allows us to use other dynamic assumptions.

Income Taxes

We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events we have recognized in our Financial Statements or tax returns, using judgment in assessing future profitability and the likely future tax consequences of those events. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations.

Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of our deferred tax liabilities or the valuations of our deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates.

For tax positions we have taken or expect to take in a tax return, we apply a more likely than not threshold, under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expense.

Cash and Equivalents

We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents.

Accounts Receivable

Our accounts receivable primarily consist of amounts due from hotel owners with whom we have management and franchise agreements and include reimbursements of costs we incurred on behalf of managed and franchised properties. We generally collect these receivables within 30 days. We record an accounts receivable reserve when losses are probable, based on an assessment of historical collection activity and current business conditions.

Assets Held for Sale

We consider properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and we expect the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property's value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we cease depreciation.

Goodwill

We assess goodwill for potential impairment at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the net assets of the reporting unit. In evaluating goodwill for impairment, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform a two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment we will recognize, if any. At year-end 2014 and year-end 2013, we concluded that it was not more likely than not that the fair value of any reporting unit was less than its carrying value.

In the first step of the two-step goodwill impairment test (“Step 1”), we compare the estimated fair value of the reporting unit with its carrying value. If the estimated fair value of the reporting unit exceeds its carrying amount, no further analysis is needed. If, however, the estimated fair value of the reporting unit is less than its carrying amount, we proceed to the second step and calculate the implied fair value of the reporting unit goodwill to determine whether any impairment is required. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the unit's assets and liabilities as if the unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in the amount of that excess. In allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit, we use industry and market data, as well as knowledge of the industry and our past experience.

We calculate the estimated fair value of a reporting unit using the income approach. For the income approach, we use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations.

We have had no goodwill impairment charges for the last three fiscal years, and as of the date of each of the most recent Step 1 tests, the estimated fair value of each of our reporting units significantly exceeded its respective carrying amount based on our models and assumptions. A ten percent change in our estimates of future cash flows or other significant assumptions would not reduce the fair value of any of our reporting units below carrying value.

We assess indefinite-lived intangible assets for potential impairment and continued indefinite use at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Similar to goodwill, we first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount. If the carrying value of the asset exceeds the implied fair value, we recognize an impairment loss in the amount of that excess.

We test definite-lived intangibles and long-lived asset groups for recoverability when changes in circumstances indicate that we may not be able to recover the carrying value; for example, when there are material adverse changes in projected revenues or expenses, significant under performance relative to historical or projected operating results, or significant negative industry or economic trends. We also test recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect to complete the plan within a year. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect the asset group will generate. If the comparison indicates that we will not be able to recover the carrying value of an asset group, we recognize an impairment loss for the amount by which the carrying value exceeds the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life.

We calculate the estimated fair value of an intangible asset or asset group using the income approach or the market approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation.

Investments

We may hold an equity interest in ventures established to develop or acquire and own hotel properties. These ventures are generally limited liability companies or limited partnerships. We account for investments in such entities using the cost method of accounting when we own a minimal investment and the equity method of accounting when we own more than a minimal investment. We account for investments in other ventures using the equity method of accounting when we exercise significant influence over the entities. If we do not exercise significant influence, we account for the investment using the cost method of accounting. We consolidate entities that we control.

Under the accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including equity investments, loans, and guarantees, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary.

We evaluate an investment for impairment when circumstances indicate that we may not be able to recover the carrying value. For example, when evaluating our ventures, we consider loan defaults, significant under-performance relative to historical or projected operating performance, or significant negative industry or economic trends.

We impair investments we account for using the equity and cost methods of accounting when we determine that there has been an “other-than-temporary” decline in the venture’s estimated fair value compared to its carrying value. Additionally, a venture's commitment to a plan to sell some or all of its assets could cause us to evaluate the recoverability of the venture's individual long-lived assets and possibly the venture itself.

We calculate the estimated fair value of an investment using either a market approach or an income approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation.

For investments in securities classified as available-for-sale, we determine the cost basis of the securities sold using specific identification, meaning that we track our securities individually.

Fair Value Measurements

We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Footnote No. 14, “Fair Value of Financial Instruments” for further information. We also apply the provisions of fair value measurement to various nonrecurring measurements for our financial and nonfinancial assets and liabilities.

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy:

Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 includes unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data.

Derivative Instruments

We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative will be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying cash flow hedges, we record changes in fair value in other comprehensive income (“OCI”). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged items’ effect on earnings.

We review the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from OCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require us to immediately recognize in earnings the gains and/or losses that we previously recorded in OCI.

Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments, including cash flow hedges, net investment in non-U.S. operations hedges, fair value hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes.

Loan Loss Reserves

We may make senior, mezzanine, and other loans to owners of hotels that we operate or franchise, generally to facilitate the development of a hotel and sometimes to facilitate brand programs or initiatives. We expect the owners to repay the loans in accordance with the loan agreements, or earlier as the hotels mature and capital markets permit. We use metrics such as loan-to-value ratios and debt service coverage, and other information about collateral and from third party rating agencies to assess the credit quality of the loan receivable, both upon entering into the loan agreement and on an ongoing basis as applicable.

On a regular basis, we individually assess loans for impairment. We use internally generated cash flow projections to determine if we expect the loans to be repaid under the terms of the loan agreements. If we conclude that it is probable a borrower will not repay a loan in accordance with its terms, we consider the loan impaired and begin recognizing interest income on a cash basis. To measure impairment, we calculate the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. If the present value or the estimated collateral is less than the carrying value of the loan receivable, we establish a specific impairment reserve for the difference.

If it is likely that a loan will not be collected based on financial or other business indicators, including our historical experience, our policy is to charge off the loan in the quarter in which we deem it uncollectible.

Guarantees

We measure and record our liability for the fair value of a guarantee on a nonrecurring basis, that is when we issue or modify a guarantee, using Level 3 internally developed inputs, as described above in this footnote under the heading “Fair Value Measurements.” We base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation.

The offsetting entry for the guarantee liability depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. In most cases, when we do not forecast any funding, we amortize the liability into income on a straight-line basis over the remaining term of the guarantee. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we record a loss except to the extent that the applicable contracts provide that the advance can be recovered as a loan.

Self-Insurance Programs

We self-insure for certain levels of property, liability, workers’ compensation and employee medical coverage. We accrue estimated costs of these self-insurance programs at the present value of projected settlements for known and incurred but not reported claims. We use a discount rate of 2.0 percent to determine the present value of the projected settlements, which we consider to be reasonable given our history of settled claims, including payment patterns and the fixed nature of the individual settlements.

We are subject to a variety of assessments for our insurance activities, including those by state guaranty funds and workers’ compensation second-injury funds. We record our liabilities for these assessments in our Balance Sheets within the other current liabilities line.

Legal Contingencies

We are subject to various legal proceedings and claims, the outcomes of which are uncertain. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. In making such determinations we evaluate, among other things, the probability of an unfavorable outcome and, when we believe it probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances.

Business Combinations

We allocate the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. We recognize as goodwill the amount by which the purchase price of an acquired entity exceeds the net of the amounts assigned to the assets acquired and liabilities assumed. In determining the fair values of assets acquired and liabilities assumed, we use various recognized valuation methods including the income and market approaches. Further, we make assumptions within certain valuation techniques, including discount rates, royalty rates, and timing of future cash flows. We record the net assets and results of operations of an acquired entity in our Financial Statements from the acquisition date. We initially perform these valuations based upon preliminary estimates and assumptions by management or independent valuation specialists under our supervision, where appropriate, and make revisions as estimates and assumptions are finalized. We expense acquisition-related costs as incurred.

New Accounting Standards

ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer or customers; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, which for us will be our 2017 first quarter. We are permitted to use the retrospective or modified retrospective method when adopting ASU No. 2014-09. We are still assessing the potential impact that ASU No. 2014-09 will have on our financial statements and disclosures.

Earnings Per Share Dilutive Securities

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period.

Intangible Assets

Property and Equipment, Capitalization and Useful Lives

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share

The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share:



	2014		2013		2012
(in millions, except per share amounts)
Computation of Basic Earnings Per Share
Net income	$	753	$	626	$	571
Weighted average shares outstanding	289.9		305.0		322.6
Basic earnings per share	$	2.60	$	2.05	$	1.77
Computation of Diluted Earnings Per Share
Net income	$	753	$	626	$	571
Weighted average shares outstanding	289.9		305.0		322.6
Effect of dilutive securities
Stock option and appreciation right plans	3.1		4.0		6.1
Deferred stock incentive plans	0.7		0.8		0.9
Restricted stock units	3.1		3.2		3.3
Shares for diluted earnings per share	296.8		313.0		332.9
Diluted earnings per share	$	2.54	$	2.00	$	1.72

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Additional Information on RSUs

The following table provides additional information on RSUs for the last three fiscal years:



	2014		2013		2012
Share-based compensation expense (in millions)	$	98	$	101	$	83
Weighted average grant-date fair value (per RSU)	$	52	$	38	$	35
Aggregate intrinsic value of converted and distributed RSUs (in millions)	$	144	$	125	$	91

Changes in Outstanding Restricted Stock Unit Grants

The following table presents the 2014 changes in our outstanding RSU grants and the associated weighted average grant-date fair values:



	Number of RSUs (in millions)		Weighted Average Grant-Date Fair Value (per RSU)
Outstanding at year-end 2013	6.8		$	35
Granted during 2014 ⁽¹⁾	2.2		52
Distributed during 2014	(2.8	)	31
Forfeited during 2014	(0.2	)	39
Outstanding at year-end 2014	6.0		$	42


⁽¹⁾	Includes 0.3 million PSUs granted to named executive officers.

Changes in Outstanding Stock Option Program Awards

The following table presents the 2014 changes in our outstanding Stock Option Program awards and the associated weighted average exercise prices:



	Number of Stock Options (in millions)		Weighted Average Exercise Price (per Option)
Outstanding at year-end 2013	4.6		$	22
Granted during 2014	0.1		53
Exercised during 2014	(4.0	)	20
Forfeited during 2014	—		—
Outstanding at year-end 2014	0.7		$	36

Stock Options Issued Under the Stock Option Program Awards

The following table presents the stock options issued under the Stock Option Program awards outstanding and exercisable at year-end 2014:



					Outstanding				Exercisable
Range of Exercise Prices					Number of Stock Options (in millions)	Weighted Average Exercise Price (per Option)		Weighted Average Remaining Life (in years)	Number of Stock Options (in millions)	Weighted Average Exercise Price (per Option)		Weighted Average Remaining Life (in years)
$	13	to	$	22	—	$	17	1	—	$	17	1
23		to	35		0.5	32		5	0.3	30		4
36		to	53		0.2	45		8	—	41		6
$	13	to	$	53	0.7	$	36	6	0.3	$	32	4

Number of Options Granted and Associated Weighted Average Grant-Date Fair Values and Weighted Average Exercise Prices

The following table presents the number of stock options we granted in the last three fiscal years and the associated weighted average grant-date fair values and weighted average exercise prices:



	2014		2013		2012
Options granted	75,861		96,960		255,761
Weighted average grant-date fair value (per option)	$	17	$	13	$	12
Weighted average exercise price (per option)	$	53	$	39	$	35

Intrinsic Value of Outstanding Stock Options and Exercisable Stock Option



($ in millions)	2014		2013
Outstanding stock options	$	28	$	126
Exercisable stock options	$	14	$	121

Changes in Outstanding SARs

The following table presents the 2014 changes in our outstanding SARs and the associated weighted average exercise prices:



	Number of SARs (in millions)		Weighted Average Exercise Price
Outstanding at year-end 2013	6.4		$	32
Granted during 2014	0.3		53
Exercised during 2014	(0.9	)	31
Forfeited during 2014	—		—
Outstanding at year-end 2014	5.8		$	33

Number of Employee SARs and Director SARs Granted, Associated Weighted Average Base Values, And Weighted Average Grant-Date Fair Values



Employee SARs	2014		2013		2012
Employee SARs granted (in millions)	0.3		0.7		1.0
Weighted average exercise price (per SAR)	$	53	$	39	$	35
Weighted average grant-date fair value (per SAR)	$	17	$	13	$	12
Director SARs	2014		2013		2012
Director SARs granted	3,277		5,903		5,915
Weighted average exercise price (per SAR)	$	59	$	44	$	39
Weighted average grant-date fair value (per SAR)	$	22	$	15	$	14

Assumptions for Stock Options and Employee SARs

We used the following assumptions to determine the fair value of the SARs and stock options we granted to employees and non-employee directors in 2014 and 2013, and to employees in 2012:



	2014		2013		2012
Expected volatility	29 - 30%		30 - 31%		31	%
Dividend yield	1.14	%	1.17	%	1.01	%
Risk-free rate	2.2 - 2.8%		1.8 - 1.9%		1.7 - 2.0%
Expected term (in years)	6 - 10		8 - 10		8 - 10

Share-Based Compensation Expense, Number of Deferred Stock Units Granted, Weighted Average Grant-date Fair Value, and Aggregate Intrinsic Value of Non-Employee Director Deferred Stock Units



	2014		2013		2012
Share-based compensation expense (in millions)	$	1.2	$	1.4	$	1.2
Non-employee director deferred stock units granted	21,000		31,000		27,000
Weighted average grant-date fair value (per share)	$	59	$	44	$	39
Aggregate intrinsic value of shares distributed (in millions)	$	0.8	$	0.7	$	1.0

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

The (Provision for) Benefit from Income Taxes

Our provision for income taxes for the last three fiscal years consists of:



($ in millions)		2014			2013			2012
Current	-U.S. Federal	$	(224	)	$	(139	)	$	6
	-U.S. State	(43		)	(17		)	(8		)
	-Non-U.S.	(47		)	(44		)	(34		)
		(314		)	(200		)	(36		)

Deferred	-U.S. Federal	(21		)	(68		)	(211		)
	-U.S. State	(5		)	(10		)	(30		)
	-Non-U.S.	5			7			(1		)
		(21		)	(71		)	(242		)
		$	(335	)	$	(271	)	$	(278	)

Unrecognized Tax Benefits Reconciliation

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2012 to the end of 2014:



($ in millions)	Amount
Unrecognized tax benefit at beginning of 2012	$	39
Change attributable to withdrawal of tax positions previously taken or expected to be taken	12
Change attributable to tax positions taken during the current period	(20		)
Decrease attributable to lapse of statute of limitations	(2		)
Unrecognized tax benefit at year-end of 2012	29
Change attributable to tax positions taken during the current period	8
Decrease attributable to settlements with taxing authorities	(2		)
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end of 2013	34
Change attributable to tax positions taken during the current period	3
Decrease attributable to settlements with taxing authorities	(27		)
Decrease attributable to lapse of statute of limitations	—
Unrecognized tax benefit at year-end of 2014	$	10

Schedule of Deferred Tax Assets and Liabilities

We had the following total deferred tax assets and liabilities at year-end 2014 and year-end 2013:



($ in millions)	At Year-End 2014		At Year-End 2013
Deferred tax assets	$	803	$	878
Deferred tax liabilities	—		(12		)
Net deferred taxes	$	803	$	866

The following table details the composition of our net deferred tax balances at year-end 2014 and year-end 2013:



($ in millions) Balance Sheet Caption	At Year-End 2014			At Year-End 2013
Current deferred taxes, net	$	311		$	252
Deferred taxes, net	530			647
Accrued expenses and other	(22		)	(19		)
Other noncurrent liabilities	(16		)	(14		)
Net deferred taxes	$	803		$	866



($ in millions)	At Year-End 2014			At Year-End 2013
Employee benefits	$	347		$	340
Net operating loss carry-forwards	257			293
Tax credits	182			273
Reserves	55			61
Frequent guest program	47			30
Self-insurance	24			23
Deferred income	20			23
Other, net	16			(12		)
Deferred taxes	948			1,031
Less: valuation allowance	(145		)	(165		)
Net deferred taxes	$	803		$	866

Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations

The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years:



	2014		2013		2012
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
U.S. state income taxes, net of U.S. federal tax benefit	2.7		2.6		2.6
Nondeductible expenses	0.2		0.5		0.3
Non-U.S. income	(4.8	)	(5.7	)	(3.9	)
Change in valuation allowance	(0.4	)	0.3		(0.2	)
Tax credits	(0.3	)	(0.4	)	(0.4	)
Other, net	(1.6	)	(2.1	)	(0.7	)
Effective rate	30.8	%	30.2	%	32.7	%

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings



($ in millions) Guarantee Type	Maximum Potential Amount of Future Fundings		Liability for Guarantees
Debt service	$	49	$	14
Operating profit	86		40
Other	14		1
Total guarantees where we are the primary obligor	$	149	$	55

LEASES (Tables)

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Future Obligations Under Operating Leases

We have summarized below our future obligations under operating leases at year-end 2014:



($ in millions)	Minimum Lease Payments
Fiscal Year
2015	$	129
2016	121
2017	114
2018	99
2019	86
Thereafter	528
Total minimum lease payments where we are the primary obligor	$	1,077

Composition of Rent Expense Associated with Operating Leases

The following table details the composition of rent expense for operating leases for the last three years:



($ in millions)	2014		2013		2012
Minimum rentals	$	143	$	159	$	188
Additional rentals	64		56		62
	$	207	$	215	$	250

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES (Tables)

12 Months Ended

Dec. 31, 2014

Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract]

Self-Insurance Reserve for Losses and Loss Adjustment Expenses

The following table summarizes the activity in our self-insurance reserve for losses and loss adjustment expenses as of year-end 2014 and 2013:



($ in millions)	2014			2013
Balance at beginning of year	$	362		$	342
Less: reinsurance recoverable	(5		)	(5		)
Net balance at beginning of year	357			337
Incurred related to:
Current year	126			116
Prior years	(2		)	8
Total incurred	124			124
Paid related to:
Current year	(24		)	(25		)
Prior years	(77		)	(79		)
Total paid	(101		)	(104		)
Net balance at end of year	380			357
Add: reinsurance recoverable	4			5
Balance at end of year	$	384		$	362

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Long-Term Debt

We provide detail on our long-term debt balances at year-end 2014 and 2013 in the following table:



($ in millions)	At Year-End 2014			At Year-End 2013
Senior Notes:
Series G Notes, interest rate of 5.8%, face amount of $316, maturing November 10, 2015 (effective interest rate of 6.6%)⁽¹⁾	$	314		$	312
Series H Notes, interest rate of 6.2%, face amount of $289, maturing June 15, 2016 (effective interest rate of 6.3%)⁽¹⁾	289			289
Series I Notes, interest rate of 6.4%, face amount of $293, maturing June 15, 2017 (effective interest rate of 6.5%)⁽¹⁾	293			292
Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%)⁽¹⁾	596			595
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%)⁽¹⁾	349			349
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%)⁽¹⁾	348			348
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%)⁽¹⁾	397			—
Commercial paper, average interest rate of 0.4% at December 31, 2014	1,072			834
$2,000 Credit Facility	—			—
Other	123			180
	3,781			3,199
Less current portion classified in:
Accrued expenses and other (liabilities held for sale)	—			(46		)
Current portion of long-term debt	(324		)	(6		)
	$	3,457		$	3,147


⁽¹⁾	Face amount and effective interest rate are as of year-end 2014.

Debt Principal Payments (Net of Unamortized Discounts)

We show future principal payments (net of unamortized discounts) for our debt in the following table:



Debt Principal Payments (net of unamortized discounts) ($ in millions)	Amount
2015	$	324
2016	297
2017	301
2018	1,082
2019	606
Thereafter	1,171
Balance at year-end 2014	$	3,781

Goodwill and Intangible Assets Disclosure [Abstract]

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

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+ Details

INTANGIBLE ASSETS AND GOODWILL (Tables)

12 Months Ended

Dec. 31, 2014

Composition of Intangible Assets, Finite-LIved

The following table details the composition of our acquired intangible assets at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Definite-lived Intangible Assets
Contract acquisition costs and other	$	1,735		$	1,550
Accumulated amortization	(461		)	(423		)
	$	1,274		$	1,127
Indefinite-lived Intangible Assets
Brands	77			4
Total Intangible Assets	$	1,351		$	1,131

Composition of Intangible Assets, Indefinite-LIved

The following table details the composition of our acquired intangible assets at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Definite-lived Intangible Assets
Contract acquisition costs and other	$	1,735		$	1,550
Accumulated amortization	(461		)	(423		)
	$	1,274		$	1,127
Indefinite-lived Intangible Assets
Brands	77			4
Total Intangible Assets	$	1,351		$	1,131

Carrying Amount of Goodwill

The following table details the carrying amount of our goodwill at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Goodwill	$	948		$	928
Accumulated impairment losses	(54		)	(54		)
	$	894		$	874

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Composition of our Property and Equipment Balances

The following table presents the composition of our property and equipment balances at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Land	$	457		$	535
Buildings and leasehold improvements	781			786
Furniture and equipment	775			789
Construction in progress	365			338
	2,378			2,448
Accumulated depreciation	(918		)	(905		)
	$	1,460		$	1,543

NOTES RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2014

Accounts, Notes, Loans and Financing Receivable [Line Items]

Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts) and Interest Rates



Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions)	Amount
2015	$	27
2016	72
2017	2
2018	3
2019	1
Thereafter	137
Balance at year-end 2014	$	242
Weighted average interest rate at year-end 2014	6.1		%
Range of stated interest rates at year-end 2014	0 - 9.0%

Notes Receivable Reserves

The following table summarizes the activity for our “Senior, mezzanine, and other loans” notes receivable reserve for 2012, 2013, and 2014:



($ in millions)	Notes Receivable Reserve
Balance at year-end 2011	$	78
Additions	2
Reversals	(1		)
Write-offs	(1		)
Transfers and other	1
Balance at year-end 2012	79
Reversals	(2		)
Transfers and other	13
Balance at year-end 2013	90
Write-offs	(45		)
Transfers and other	5
Balance at year-end 2014	$	50

Notes Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Composition of our Notes Receivable Balances (Net of Reserves and Unamortized Discounts)

The following table presents the composition of our notes receivable balances (net of reserves and unamortized discounts) at year-end 2014 and 2013:



($ in millions)	At Year-End 2014			At Year-End 2013
Senior, mezzanine, and other loans	$	242		$	178
Less current portion	(27		)	(36		)
	$	215		$	142

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities

We show the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table:



	At Year-End 2014						At Year-End 2013
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Senior, mezzanine, and other loans	$	215		$	214		$	142		$	145
Marketable securities and other debt securities	44			44			111			111
Total noncurrent financial assets	$	259		$	258		$	253		$	256

Senior Notes	$	(2,272	)	$	(2,370	)	$	(2,185	)	$	(2,302	)
Commercial paper	(1,072		)	(1,072		)	(834		)	(834		)
Other long-term debt	(108		)	(122		)	(123		)	(124		)
Other noncurrent liabilities	(57		)	(57		)	(50		)	(50		)
Total noncurrent financial liabilities	$	(3,509	)	$	(3,621	)	$	(3,192	)	$	(3,310	)

Schedule of Accumulated Other Comprehensive Income (Loss) Activity

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

COMPREHENSIVE INCOME AND SHAREHOLDERS’ (DEFICIT) EQUITY (Tables)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

The following table details our accumulated other comprehensive (loss) income activity for 2014, 2013, and 2012:



($ in millions)	Foreign Currency Translation Adjustments			Other Derivative Instrument Adjustments ⁽¹⁾			Unrealized Gains (Losses) on Available-For-Sale Securities ⁽²⁾			Accumulated Other Comprehensive Loss
Balance at year-end 2011	$	(37	)	$	(18	)	$	7		$	(48	)
Other comprehensive income (loss) before reclassifications	4			(2		)	—			2
Amounts reclassified from accumulated other comprehensive loss	1			1			—			2
Net other comprehensive income (loss)	5			(1		)	—			4
Balance at year-end 2012	$	(32	)	$	(19	)	$	7		$	(44	)
Other comprehensive income (loss) before reclassifications	1			—			5			6
Amounts reclassified from accumulated other comprehensive loss	—			—			(6		)	(6		)
Net other comprehensive income (loss)	1			—			(1		)	—
Balance at year-end 2013	$	(31	)	$	(19	)	$	6		$	(44	)
Other comprehensive (loss) income before reclassifications	(41		)	8			5			(28		)
Amounts reclassified from accumulated other comprehensive loss	—			2			—			2
Net other comprehensive (loss) income	(41		)	10			5			(26		)
Balance at year-end 2014	$	(72	)	$	(9	)	$	11		$	(70	)


⁽¹⁾	We present the portions of other comprehensive income (loss) before reclassifications that relate to other derivative instrument adjustments net of zero deferred taxes for 2014 and 2013, and deferred tax benefits of $1 million for 2012.


⁽²⁾	We present the portions of other comprehensive income (loss) before reclassifications that relate to unrealized gains (losses) on available-for-sale securities net of deferred taxes of $3 million for 2014, $2 million for 2013 and $4 million for 2012.

Reclassification out of Accumulated Other Comprehensive Income

The following table details the effect on net income of amounts we reclassified out of accumulated other comprehensive loss for 2014:



($ in millions)	Amounts Reclassified from Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss Components	2014			Income Statement Line(s) Item Affected
Other derivative instrument adjustments
Gains (losses) on cash flow hedges:
Foreign exchange contracts	$	1		Franchise fees
Interest rate contracts	(5		)	Interest expense
	(4		)	Income before income taxes
	2			Provision for income taxes
	$	(2	)	Net income

BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Depreciation and Amortization



($ in millions)	2014		2013		2012
North American Full-Service Segment	$	8,323	$	7,978	$	7,276
North American Limited-Service Segment	2,962		2,583		2,456
International Segment	2,255		1,957		1,794
Total segment revenues ⁽¹⁾	13,540		12,518		11,526
Other unallocated corporate	256		266		288
	$	13,796	$	12,784	$	11,814


⁽¹⁾	Revenues attributed to operations located outside the United States were $2,518 million in 2014, $2,149 million in 2013, and $1,912 million in 2012.

Net Income



($ in millions)	2014			2013			2012
North American Full-Service Segment	$	524		$	490		$	442
North American Limited-Service Segment	574			479			472
International Segment	295			228			251
Total segment profits ⁽¹⁾	1,393			1,197			1,165
Other unallocated corporate	(220		)	(203		)	(196		)
Interest expense and interest income	(85		)	(97		)	(120		)
Income taxes	(335		)	(271		)	(278		)
	$	753		$	626		$	571


⁽¹⁾	Segment profits attributed to operations located outside the United States were $327 million in 2014, $269 million in 2013, and $283 million in 2012. The 2014 segment profits consisted of segment profits of $99 million from Asia Pacific, $95 million from Europe, $74 million from the Caribbean and Latin America, $32 million from Canada, and $27 million from the Middle East and Africa.



($ in millions)	2014		2013		2012
North American Full-Service Segment	$	52	$	57	$	46
North American Limited-Service Segment	22		21		16
International Segment	42		42		33
Total segment depreciation and amortization	116		120		95
Other unallocated corporate ⁽¹⁾	32		7		7
	$	148	$	127	$	102


⁽¹⁾	Includes a $25 million net impairment charge we recorded in 2014 on three EDITION hotels. See Footnote No. 3, “Acquisitions and Dispositions” for more information.

Goodwill



($ in millions)	North American Full-Service Segment		North American Limited-Service Segment			International Segment		Total Goodwill
Year-end 2012 balance:
Goodwill	$	392	$	125		$	411	$	928
Accumulated impairment losses	—		(54		)	—		(54		)
	$	392	$	71		$	411	$	874
Year-end 2013 balance:
Goodwill	$	392	$	125		$	411	$	928
Accumulated impairment losses	—		(54		)	—		(54		)
	$	392	$	71		$	411	$	874
Year-end 2014 balance:
Goodwill	$	392	$	125		$	431	$	948
Accumulated impairment losses	—		(54		)	—		(54		)
	$	392	$	71		$	431	$	894

Capital Expenditures



($ in millions)	2014		2013		2012
North American Full-Service Segment	$	251	$	145	$	257
North American Limited-Service Segment	5		8		19
International Segment	87		93		96
Total segment capital expenditures	343		246		372
Other unallocated corporate	68		50		65
	$	411	$	296	$	437

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2014

Financial Data Resulting from Transactions with Related Parties, Income Statement Data

The following tables present financial data resulting from transactions with these related parties:

Income Statement Data



($ in millions)	2014			2013			2012
Base management fees	$	17		$	17		$	26
Incentive management fees	6			1			5
Owned, leased, and other revenue	1			1			3
Cost reimbursements	226			236			315
Total revenue	$	250		$	255		$	349
Reimbursed costs	$	(226	)	$	(236	)	$	(315	)
Depreciation, amortization, and other	(2		)	(2		)	(2		)
General, administrative, and other	(2		)	(3		)	2
Gains and other income	—			—			43
Interest expense	—			—			1
Interest income	5			4			3
Equity in earnings (losses)	6			(5		)	(13		)

Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data

Balance Sheet Data



($ in millions)	At Year-End 2014			At Year-End 2013
Current assets
Accounts and notes receivable, net	$	26		$	22
Other	1			—
Intangible assets
Contract acquisition costs and other	20			20
Equity and cost method investments	210			207
Deferred taxes, net	13			16
Other noncurrent assets	19			16
Current liabilities
Accounts payable	(10		)	(4		)
Accrued expenses and other	(20		)	(9		)
Other noncurrent liabilities	(3		)	(2		)

Summarized Information for the Entities Equity Method Investments, Income Statement

Summarized information for the entities in which we have equity method investments is as follows:

Income Statement Data



($ in millions)	2014		2013		2012
Sales	$	752	$	727	$	902
Net income (loss)	$	38	$	11	$	(4	)

Summarized Information for the Entities Equity Method Investments, Balance Sheet

Balance Sheet Summary



($ in millions)	At Year-End 2014		At Year-End 2013
Assets (primarily comprised of hotel real estate managed by us)	$	1,499	$	1,832
Liabilities	$	1,287	$	1,482

SUPPLEMENTARY DATA - QUARTERLY FINANCIAL DATA – UNAUDITED (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information



($ in millions, except per share data)	2014
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	3,293	$	3,484	$	3,460	$	3,559	$	13,796
Operating income	$	254	$	316	$	298	$	291	$	1,159
Net income	$	172	$	192	$	192	$	197	$	753
Diluted earnings per share	$	0.57	$	0.64	$	0.65	$	0.68	$	2.54



($ in millions, except per share data)	2013 ⁽²⁾
	First Quarter ⁽¹⁾		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	3,142	$	3,263	$	3,160	$	3,219	$	12,784
Operating income	$	226	$	279	$	245	$	238	$	988
Net income	$	136	$	179	$	160	$	151	$	626
Diluted earnings per share	$	0.43	$	0.57	$	0.52	$	0.49	$	2.00


⁽¹⁾	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.


⁽²⁾	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Significant Accounting Policies [Line Items]
Licensing fees from MVW after spin-off	$ 60,000,000	$ 61,000,000	$ 61,000,000
Liability for guest loyalty program	2,334,000,000	2,141,000,000
Reduction in estimate of breakage	10.00%
Increase in liability for guest loyalty program, contingent upon reduction in the estimate of breakage	142,000,000
Gains (losses) from foreign currency transactions	16,000,000	5,000,000	3,000,000
Gains and other income	0	0	1,000,000
Accounts receivable reserve	33,000,000	43,000,000
Goodwill impairment charge	0	0	0
Fair value of goodwill as a percent of carrying value, trigger for impairment loss	10.00%
Discount rate	2.00%
Self-insurance reserves	4,000,000	5,000,000
Deferred Profit Sharing
Significant Accounting Policies [Line Items]
Compensation costs from profit sharing	$ 76,000,000	$ 75,000,000	$ 69,000,000

Additional Information - Acquisitions (Detail) In Millions, unless otherwise specified	12 Months Ended			4 Months Ended	12 Months Ended		3 Months Ended					3 Months Ended		0 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 28, 2012 USD ($)	Dec. 28, 2012 Land For Hotel USD ($)	Dec. 28, 2012 Land and Building for Hotel USD ($)	Dec. 30, 2011 Land and Building for Hotel USD ($)	Jun. 30, 2015 Delta Hotels and Resorts Scenario, Forecast USD ($) hotel_and_resort room	Jun. 30, 2015 Delta Hotels and Resorts Scenario, Forecast CAD	Jun. 30, 2014 Protea Hospitality Holdings USD ($) room hotel brand country	Jun. 30, 2014 Protea Hospitality Holdings ZAR	Dec. 31, 2014 Protea Hospitality Holdings country	Dec. 31, 2014 Brazil, Property Under Construction USD ($)	Dec. 31, 2014 Brazil, Property Under Construction BRL	Oct. 01, 2012 Gaylord Entertainment Corporation USD ($) location room	Dec. 01, 2012 Gaylord Entertainment Corporation room
Significant Acquisitions and Disposals [Line Items]
Acquisition amount								168
Cash consideration paid		115					135		193	2,046		31	74	210
Number of open hotels and resorts acquired							38	38
Number of rooms acquired							10,000	10,000
Number of managed hotels and resorts acquired							28	28
Number of managed hotels and resorts acquired, 30 year management agreement							13	13
Number of franchised hotels and resorts acquired							10	10
Number of hotels and resorts under development acquired							5	5
Number of hotels and resorts under development acquired, 30 year management agreement							1	1
Recognized identifiable assets and liabilities acquired									184	1,943
Acquired intangible assets recognized									91	960				210
Indefinite-lived intangible assets									73	772
Goodwill	894	874	874						20	211
Recognized identifiable tangible assets acquired									9	103
Number of hotels acquired									113	113				4
Number of hotel rooms acquired									10,016	10,016				7,800	300
Number of hotel brands									3	3
Number of countries in which entity operates									6	6	7
Percent of hotel rooms managed									45.00%	45.00%
Percent of hotel rooms franchised									39.00%	39.00%
Percent of hotel rooms leased									16.00%	16.00%
Payments to acquire property, plant, and equipment	411	296	437	32	160
Security deposit						$ 6

Additional Information - Dispositions (Details) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended							3 Months Ended			3 Months Ended						12 Months Ended
	Mar. 31, 2014 hotel	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 28, 2012 USD ($) Entity	Dec. 28, 2012 North American Limited Service Joint Venture USD ($)	Dec. 28, 2012 Performance Arrangement North American Limited Service Joint Venture USD ($)	Dec. 28, 2012 Sale of Land to Joint Venture in 2005 North American Limited Service Joint Venture USD ($)	Dec. 31, 2013 London EDITION Hotel USD ($)	Dec. 31, 2014 Land Parcel Sale to Third Party [Member] USD ($)	Dec. 31, 2013 Right to Acquire Landlord's Interest in Real Estate Property and Attached Assets USD ($)	Dec. 31, 2013 Right to Acquire Landlord's Interest in Real Estate Property and Attached Assets EUR (€)	Mar. 31, 2014 International Segment London EDITION Hotel USD ($)	Mar. 31, 2014 International Segment Right to Acquire Landlord's Interest in Real Estate Property and Attached Assets USD ($)	Mar. 31, 2014 International Segment Right to Acquire Landlord's Interest in Real Estate Property and Attached Assets EUR (€)	Dec. 31, 2014 North American Full-Service Segment Miami Beach EDITION Hotels USD ($)	Mar. 31, 2014 North American Full-Service Segment Miami Beach EDITION Hotels USD ($)	Jun. 30, 2015 Scenario, Forecast London EDITION Hotel USD ($)	Dec. 31, 2014 Property and Equipment USD ($)	Dec. 31, 2014 Other Current Liabilities North American Full-Service Segment Miami Beach EDITION Hotels USD ($)
Significant Acquisitions and Disposals [Line Items]
Proceeds from dispositions		$ 435	$ 0	$ 65					$ 42			$ 230			$ 100	$ 230
Number of hotels	3
Assets held-for-sale																	816
Impairment charge																		25
Assets, reclassified													106	77	233
Assets, property, plant and equipment, reclassified															157
Assets held for sale		233	350					244		106	77				17
Liabilities, reclassified			61					13		48	35		48	35	26				14
Cash proceeds from sale of rights to acquire property and attached assets													62	45
Noncash proceeds from sale of rights to acquire property and attached assets													45	33
Number of joint ventures merged before sale				2
Proceeds from sale of interest in joint venture					96	30
Total gain recognized on disposal					41
Deferred gain on sale, amount recognized in current period							20
Gain on sale of interest in joint venture					21
Deferred revenue recognized					$ 7

Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Computation of Basic Earnings Per Share

Net income (in USD)

$ 197

$ 192

$ 172

$ 151

^[1]

$ 160

^[1]

$ 179

^[1]

$ 136

^[1],[2]

$ 753

$ 626

^[1]

$ 571

Weighted average shares outstanding

289.9

305.0

322.6

Basic earnings per share (in USD per share)

$ 2.60

$ 2.05

$ 1.77

Computation of Diluted Earnings Per Share

Net income (in USD)

$ 197

$ 192

$ 172

$ 151

^[1]

$ 160

^[1]

$ 179

^[1]

$ 136

^[1],[2]

$ 753

$ 626

^[1]

$ 571

Weighted average shares outstanding

289.9

305.0

322.6

Shares for diluted earnings per share

296.8

313.0

332.9

Diluted earnings per share (in USD per share)

$ 0.68

$ 0.65

$ 0.64

$ 0.57

$ 0.49

^[1]

$ 0.52

^[1]

$ 0.57

^[1]

$ 0.43

^[1],[2]

$ 2.54

$ 2.00

^[1]

$ 1.72

Stock option and appreciation right plans

Effect of dilutive securities

3.1

4.0

6.1

Deferred stock incentive plans

Effect of dilutive securities

0.7

0.8

0.9

Restricted stock units

Effect of dilutive securities

3.1

3.2

3.3

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[2]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Earnings Per Share - Additional Information (Detail) (Stock option and appreciation right plans)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Stock option and appreciation right plans
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the calculation of diluted earnings per share (in shares)	0	400,000	1,000,000

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

Share-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Options granted

75,861

96,960

255,761

Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011)

$ 109.0

$ 116.0

$ 94.0

Deferred compensation costs related to unvested awards

114

108

Deferred compensation costs related to unvested awards, weighted average period

2 years

Tax benefit (costs) from share-based compensation in financing activities

121

Proceeds from exercise of stock options granted under share-based payment arrangements

178

199

179

Total intrinsic value of stock options exercised

160

131

158

Shares reserved under the Stock Plan

27,000,000

Restricted Stock Units, Excluding Service and Performance RSUs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

1,900,000

S&P RSUs

Service and performance RSUs granted

300,000

Stock Appreciation Rights

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Service and performance RSUs granted

300,000

5,800,000

6,400,000

Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011)

8.0

12.0

9.0

Deferred compensation costs related to unvested awards

Intrinsic value of stock appreciation rights outstanding (less than $1 million at year-end 2011)

264

111

Intrinsic value of stock appreciation rights exercisable

197

Intrinsic value of stock appreciation rights exercised

Stock Appreciation Rights | Employee

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

300,000

700,000

1,000,000

4 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

10 years

Stock Appreciation Rights | Director

3,277

5,903

5,915

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

10 years

Period until exercisable

1 year

Restricted Stock Units

Service and performance RSUs granted

2,200,000

^[1]

6,000,000

6,800,000

Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011)

98.0

101.0

83.0

Deferred compensation costs related to unvested awards

109

102

Weighted average remaining term for grants outstanding

4 years

2 years

PSUs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

3 years

Employee Stock Option

Options granted

100,000

Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011)

2.0

1.0

Deferred compensation costs related to unvested awards

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

4 years

Stock Options Issued from 1990 Through 2000

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

15 years

Nonqualified Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

10 years

Deferred Stock Units | Director

Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011)

21,000

31,000

27,000

$ 1.2

$ 1.4

$ 1.2

Outstanding units at year-end

1 year

268,000

261,000

Weighted average grant-date fair value per share of deferred stock units outstanding as of year end

$ 30

$ 22

Stock Option Program and Stock Appreciation Right Program

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares reserved under the Stock Plan

6,000,000

[1]	Includes 0.3 million PSUs granted to named executive officers.

Additional Information on RSUs (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Reconciliation of Restricted Stock Activity [Line Items]

Share-based compensation expense (in millions)

$ 109.0

$ 116.0

$ 94.0

Restricted Stock Units

Reconciliation of Restricted Stock Activity [Line Items]

Share-based compensation expense (in millions)

98.0

101.0

83.0

Weighted average grant-date fair value (per unit)

$ 52

^[1]

$ 38

$ 35

Aggregate intrinsic value of converted and distributed RSUs (in millions)

$ 144

$ 125

$ 91

[1]	Includes 0.3 million PSUs granted to named executive officers.

Changes in Outstanding Restricted Stock Unit Grants (Detail) (USD $)

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Restricted Stock Units

Number of RSUs

Outstanding beginning balance

6,800,000

Outstanding ending balance

2,200,000

^[1]

Distributed

(2,800,000)

Forfeited

(200,000)

6,000,000

6,800,000

Weighted Average Grant-Date Fair Value

Outstanding beginning balance (per unit)

$ 35

Granted (per unit)

$ 52

^[1]

$ 38

$ 35

Distributed (per unit)

$ 31

Forfeited (per unit)

$ 39

Outstanding ending balance (per unit)

$ 42

$ 35

S&P RSUs

Number of RSUs

Outstanding ending balance

300,000

[1]	Includes 0.3 million PSUs granted to named executive officers.

Changes in Outstanding Stock Option Program Awards (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Number of Stock Options (in millions)
Granted	75,861	96,960	255,761
Outstanding ending balance	700,000
Weighted Average Exercise Price (per Option)
Granted (per unit)	$ 17	$ 13	$ 12
Outstanding ending balance (per unit)	$ 36
Employee Stock Option
Number of Stock Options (in millions)
Outstanding beginning balance	4,600,000
Granted	100,000
Exercised	(4,000,000)
Forfeited	0
Outstanding ending balance	700,000
Weighted Average Exercise Price (per Option)
Outstanding beginning balance (per unit)	$ 22
Granted (per unit)	$ 53
Exercised (per unit)	$ 20
Forfeited (per unit)	$ 0
Outstanding ending balance (per unit)	$ 36
Vesting period	4 years

Stock Options Issued under Stock Option Program Awards (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 13
Range of Exercise Prices, Upper Limit	$ 53
Outstanding - Number of Stock Options (in millions)	0.7
Outstanding - Weighted Average Exercise Price (per unit)	$ 36
Outstanding - Weighted Average Remaining Life	6 years
Exercisable - Number of Stock Options (in millions)	0.3
Exercisable - Weighted Average Exercise Price (per unit)	$ 32
Exercisable - Weighted Average Remaining Life	4 years
Range 2
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 13
Range of Exercise Prices, Upper Limit	$ 22
Outstanding - Number of Stock Options (in millions)	0
Outstanding - Weighted Average Exercise Price (per unit)	$ 17
Outstanding - Weighted Average Remaining Life	1 year
Exercisable - Number of Stock Options (in millions)	0
Exercisable - Weighted Average Exercise Price (per unit)	$ 17
Exercisable - Weighted Average Remaining Life	1 year
Range 3
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 23
Range of Exercise Prices, Upper Limit	$ 35
Outstanding - Number of Stock Options (in millions)	0.5
Outstanding - Weighted Average Exercise Price (per unit)	$ 32
Outstanding - Weighted Average Remaining Life	5 years
Exercisable - Number of Stock Options (in millions)	0.3
Exercisable - Weighted Average Exercise Price (per unit)	$ 30
Exercisable - Weighted Average Remaining Life	4 years
Range 4
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 36
Range of Exercise Prices, Upper Limit	$ 53
Outstanding - Number of Stock Options (in millions)	0.2
Outstanding - Weighted Average Exercise Price (per unit)	$ 45
Outstanding - Weighted Average Remaining Life	8 years
Exercisable - Number of Stock Options (in millions)	0
Exercisable - Weighted Average Exercise Price (per unit)	$ 41
Exercisable - Weighted Average Remaining Life	6 years

Number of Options Granted and Associated Weighted Average Grant-Date Fair Values and Weighted Average Exercise Prices (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options granted	75,861	96,960	255,761
Weighted average grant-date fair value (per unit)	$ 17	$ 13	$ 12
Weighted average exercise price (per unit)	$ 53	$ 39	$ 35

Intrinsic Value of Outstanding Stock Options and Exercisable Stock Options (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding stock options	$ 28	$ 126
Exercisable stock options	$ 14	$ 121

Changes in Outstanding SARs (Detail) (USD $)	12 Months Ended
Changes in Outstanding SARs (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Weighted Average Exercise Price
Granted (per unit)	$ 17	$ 13	$ 12
Outstanding ending balance (per unit)	$ 36
Stock Appreciation Rights
Number of SARs (in millions)
Outstanding beginning balance	6,400,000
Granted	300,000
Exercised	(900,000)
Forfeited	0
Outstanding ending balance	5,800,000
Weighted Average Exercise Price
Outstanding beginning balance (per unit)	$ 32
Granted (per unit)	$ 53
Exercised (in shares)	$ 31
Forfeited (per unit)	$ 0
Outstanding ending balance (per unit)	$ 33

Number of Employee SARs and Director SARs Granted, Associated Weighted Average Base Values, And Weighted Average Grant-Date Fair Values (Detail) (Stock Appreciation Rights, USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	300,000
Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	300,000	700,000	1,000,000
Weighted average exercise price (per unit)	$ 53	$ 39	$ 35
Weighted average grant-date fair value (per unit)	$ 17	$ 13	$ 12
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	3,277	5,903	5,915
Weighted average exercise price (per unit)	$ 59	$ 44	$ 39
Weighted average grant-date fair value (per unit)	$ 22	$ 15	$ 14

Assumptions for Stock Options and Employee SARs (Detail) (Stock Option Program and Stock Appreciation Right Program)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected volatility			31.00%
Dividend yield	1.14%	1.17%	1.01%
Lower Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected volatility	29.00%	30.00%
Risk-free rate	2.20%	1.80%	1.70%
Expected term (in years)	6 years	8 years	8 years
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected volatility	30.00%	31.00%
Risk-free rate	2.80%	1.90%	2.00%
Expected term (in years)	10 years	10 years	10 years

Share-Based Compensation Expense, Number of Deferred Stock Units Granted, Weighted Average Grant-Date Fair Value, and Aggregate Intrinsic Value of Non-Employee Director Deferred Stock Units (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation expense (in millions)	$ 109.0	$ 116.0	$ 94.0
Deferred Stock Units \| Director
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation expense (in millions)	1.2	1.4	1.2
Non-employee director deferred stock units granted	21,000	31,000	27,000
Weighted average grant-date fair value (per share)	$ 59	$ 44	$ 39
Aggregate intrinsic value of shares distributed (in millions)	$ 0.8	$ 0.7	$ 1.0

Domestic and Foreign Earnings (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Income Tax Disclosure [Abstract]
U.S.	$ 808	$ 630	$ 631
Non-U.S.	280	267	218
Earnings before income taxes	$ 1,088	$ 897	$ 849

The (Provision for) Benefit from Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Income Tax Disclosure [Abstract]
Federal, Current	$ (224)	$ (139)	$ 6
State, Current	(43)	(17)	(8)
Non-U.S., Current	(47)	(44)	(34)
Current Income Tax Expense (Benefit)	(314)	(200)	(36)
Federal, Deferred	(21)	(68)	(211)
State, Deferred	(5)	(10)	(30)
Non-U.S., Deferred	5	7	(1)
Deferred Income Tax Expense (Benefit)	(21)	(71)	(242)
(Provision) benefit for income taxes	$ (335)	$ (271)	$ (278)

Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
Income Taxes - Additional Information (Detail) (USD $)	Dec. 31, 2014 apportionment_issue	Dec. 31, 2013	Dec. 28, 2012
Income Taxes [Line Items]
Tax benefits (costs) from share-based compensation	$ 89,000,000	$ 66,000,000	$ 76,000,000
Tax credits included in provision for income taxes	4,000,000	3,000,000	3,000,000
Tax provision (benefit) applicable to other comprehensive income	5,000,000	2,000,000	5,000,000
Cumulative unremitted earnings of subsidiaries	894,000,000
Change in unrecognized tax benefits	(24,000,000)	5,000,000	(10,000,000)
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	7,000,000	12,000,000	13,000,000
State apportionment issues resolved during the next 12 months	2
Tax credits subject to expiration	28,000,000
Tax credits not subject to expiration	153,000,000
Net operating loss benefits	10,000,000	14,000,000
Net operating losses	1,200,000,000
Net operating losses subject to expiration	561,000,000
Net cash payments (receipts) for income tax (refunds)	172,000,000	77,000,000	(17,000,000)
International Issue Relating to Financing Activity and US Federal Tax Issue
Income Taxes [Line Items]
Change in unrecognized tax benefits, amount of unrecorded benefit	$ 4,000,000

Unrecognized Tax Benefit Reconciliation (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit at beginning of year	$ 34	$ 29	$ 39
Change attributable to withdrawal of tax positions previously taken or expected to be taken			12
Change attributable to tax positions taken during the current period			(20)
Change attributable to tax positions taken during the current period	3	8
Decrease attributable to settlements with taxing authorities	(27)	(2)
Decrease attributable to lapse of statute of limitations	0	(1)	(2)
Unrecognized tax benefit at end of year	$ 10	$ 34	$ 29

Total Deferred Tax Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 803	$ 878
Deferred tax liabilities	0	(12)
Net deferred taxes	$ 803	$ 866

Composition of Net Deferred Tax Balances (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2014

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Current deferred taxes, net

$ 311

$ 252

530

^[1]

647

^[1]

(22)

(19)

(16)

(14)

Net deferred taxes

$ 803

$ 866

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.

Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards expected to be realized or consumed within one year or operating cycle, if longer.

+ References+ Details

Amount after allocation of valuation allowances of noncurrent deferred tax asset attributable to deductible temporary differences and carryforwards. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer).

+ References+ Details

Amount of deferred tax liability attributable to taxable temporary differences, net of deferred tax asset attributable to deductible temporary differences and carryforwards net of valuation allowances expected to be realized or consumed within one year or operating cycle, if longer.

+ References+ Details

Types of Temporary Differences and Carry-Forwards that Significantly Effect Deferred Tax Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Employee benefits	$ 347	$ 340
Net operating loss carry-forwards	257	293
Tax credits	182	273
Reserves	55	61
Frequent guest program	47	30
Self-insurance	24	23
Deferred income	20	23
Other, net	16	(12)
Deferred taxes	948	1,031
Less: valuation allowance	(145)	(165)
Net deferred taxes	$ 803	$ 866

Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Income Tax Disclosure [Abstract]
U.S. statutory tax rate	35.00%	35.00%	35.00%
U.S. state income taxes, net of U.S. federal tax benefit	2.70%	2.60%	2.60%
Nondeductible expenses	0.20%	0.50%	0.30%
Non-U.S. income	(4.80%)	(5.70%)	(3.90%)
Change in valuation allowance	(0.40%)	0.30%	(0.20%)
Tax credits	(0.30%)	(0.40%)	(0.40%)
Other, net	(1.60%)	(2.10%)	(0.70%)
Effective rate	30.80%	30.20%	32.70%

Contingencies - Guarantees (Details) In Millions, unless otherwise specified	12 Months Ended																											12 Months Ended		0 Months Ended		12 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2014 EUR (€)	Dec. 31, 2014 Lease Obligations and Debt Securities Payable USD ($)	Dec. 31, 2014 Primary Obligor USD ($)	Dec. 31, 2014 Primary Obligor Other Current Liabilities USD ($)	Dec. 31, 2014 Primary Obligor Other Long Term Liabilities USD ($)	Dec. 31, 2014 Primary Obligor Guarantee, Indebtedness of Others USD ($)	Dec. 31, 2014 Primary Obligor Guarantee, Operating Profit USD ($)	Dec. 31, 2014 Primary Obligor Guarantee Type, Other USD ($)	Dec. 31, 2014 Primary Obligor Not Yet In Effect Condition Guarantee, Indebtedness of Others USD ($)	Dec. 31, 2014 Primary Obligor Not Yet In Effect Condition Guarantee, Operating Profit USD ($)	Dec. 31, 2014 Primary Obligor Not Yet In Effect Condition Other Guarantees USD ($)	Dec. 31, 2014 Secondarily Liable USD ($)	Dec. 31, 2014 Secondarily Liable Debt Securities Payable USD ($)	Dec. 31, 2014 Sunrise Senior Living Inc Secondarily Liable Property Lease Guarantee USD ($)	Dec. 31, 2014 Sunrise Senior Living Inc Secondarily Liable Debt Securities Payable USD ($)	Dec. 31, 2014 CNL Retirement Properties Inc Secondarily Liable Debt Securities Payable USD ($)	Dec. 31, 2014 Renaissance Hotel Group N.V. Secondarily Liable Property Lease Guarantee USD ($)	Dec. 31, 2014 Renaissance Hotel Group N.V. Secondarily Liable Property Lease Guarantee EUR (€)	Sep. 09, 2005 Renaissance Hotel Group N.V. Secondarily Liable Property Lease Guarantee EUR (€)	Dec. 31, 2014 MVW Spin-off Secondarily Liable USD ($) guarantee	Dec. 31, 2014 Letter of Credit Key Bank Sunrise Senior Living Inc Secondarily Liable Property Lease Guarantee USD ($)	Dec. 31, 2014 Expiration in 2019 MVW Spin-off Secondarily Liable USD ($)	Dec. 31, 2014 Expiration in 2022 MVW Spin-off Secondarily Liable USD ($)	Dec. 31, 2014 Expiration in 2022 MVW Spin-off Secondarily Liable SGD	Dec. 31, 2014 ExecuStay Property Lease Guarantee USD ($)	Dec. 31, 2014 ExecuStay Secondarily Liable Lease is Terminated After End of 2013 Property Lease Guarantee USD ($)	Dec. 31, 2014 Lower Limit	Dec. 31, 2014 Upper Limit	Jan. 14, 2014 New York City EDITION Hotel	Jan. 14, 2014 New York City EDITION Hotel USD ($)	Dec. 31, 2014 Group 4 Investment in Other Joint Venture Commitment USD ($)	Dec. 31, 2014 Group 4 Investment in Other Joint Venture Commitment EUR (€)
Commitments and Contingencies Disclosure [Line Items]
Guarantee obligations, term																												4 years	10 years
Liability for guarantees			$ 3	$ 55	$ 4	$ 51	$ 14	$ 40	$ 1												$ 1					$ 1
Maximum potential amount of future fundings				149			49	86	14	16	26	1	83	22	61	3	19				12		4	8	11		6
Guarantor obligations, number of guarantees																					2
Loan commitment, put option agreement, obligation to acquire property, term																														2 years
Loan commitment, put option agreement, obligation to acquire property, amount																															315
Loan commitment, put option agreement, obligation to acquire property, extended term																														3 years
Cash collateral in the event funding is required															1
Letter of credit provided by Sunrise, amount available																						85
Line of credit facility provided by third party, current borrowing capacity for period																						71
Collateral for continuing lease obligation contingency, future minimum annual payments due															1
Annual rent payments, approximately																		6
Remaining rent payments, approximately																		26
Guarantee obligations, cash collateralized																		3	2	35
Contingent acquisition period																																6 years	6 years
Amount of deposit used for contingent joint venture interest acquisition	18	15
Deposits in conjunction with contingent obligation to acquire the interest in joint ventures																																$ 13	€ 11

Contingencies - Commitments and Letters of Credit (Details) In Millions, unless otherwise specified	12 Months Ended		3 Months Ended	12 Months Ended									12 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2014 EUR (€)	Jun. 30, 2013 Debt Securities Mandatorily Redeemable Preferred Equity Ownership Interest hotel	Dec. 31, 2014 Debt Securities Mandatorily Redeemable Preferred Equity Ownership Interest USD ($) hotel	Dec. 31, 2014 Equity Investment For Noncontrolling Interest In Partnership Commitment Full Service and Limited Service USD ($)	Dec. 31, 2014 Equity Investment For Noncontrolling Interest In Partnership Commitment Full Service and Limited Service Upper Limit USD ($)	Dec. 31, 2014 Equity Investment For Noncontrolling Interest In Partnership Commitment Limited Service USD ($)	Dec. 31, 2014 Equity Investment For Noncontrolling Interest In Partnership Commitment Limited Service Upper Limit USD ($)	Dec. 31, 2014 Real Estate Investment Upper Limit USD ($)	Dec. 31, 2014 Renovation of Leased Hotel USD ($)	Dec. 31, 2014 Development of Dual Branded Property USD ($)	Dec. 31, 2014 Development of Dual Branded Property BRL	Dec. 31, 2014 Investment in Other Joint Venture Commitment Group 4 USD ($) Entity	Dec. 31, 2014 Investment in Other Joint Venture Commitment Group 4 EUR (€)	Dec. 31, 2014 Information Technology Hardware, Software, Accounting, Finance, and Maintenance Services USD ($)	Dec. 31, 2014 Commitments USD ($)	Dec. 31, 2014 Lodging Property USD ($)
Commitments and Contingencies Disclosure [Line Items]
Investment commitments				$ 10		$ 8		$ 23			$ 26	69
Investment commitments expected to be funded in 2015					1		3		11	2	25	66
Investment commitments expected to be funded in 2016							6				1	3
Investment commitments, funding not expected					7		14									32
Acquisition interests in joint ventures													2	2
Contingent acquisition period													6 years	6 years
Amount of deposit used for contingent joint venture interest acquisition	18	15
Deposits in conjunction with contingent obligation to acquire the interest in joint ventures													13	11
Purchase obligation															186
Purchase obligation, expect to fund commitments in 2015															66
Purchase obligation, expect to fund commitments in 2016															41
Purchase obligation, expect to fund commitments in 2017															39
Purchase obligation, thereafter															40
Number of hotels			3	3
Loan commitment, amount																	9
Letters of credit outstanding	87
Surety bonds issued	$ 153

Future Obligations Under Operating Leases (Detail) (Primary Obligations Operating Leases, USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Primary Obligations Operating Leases
Operating Leased Assets [Line Items]
Minimum operating lease payments - 2015	$ 129
Minimum operating lease payments - 2016	121
Minimum operating lease payments - 2017	114
Minimum operating lease payments - 2018	99
Minimum operating lease payments - 2019	86
Minimum operating lease payments - thereafter	528
Total minimum operating lease payments where we are the primary obligor	$ 1,077

Leases - Additional Information (Detail) (USD $) In Millions, unless otherwise specified				12 Months Ended
	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2014 Lower Limit Contract	Dec. 31, 2014 Upper Limit	Dec. 31, 2014 Primary Obligations Operating Leases	Dec. 31, 2014 Consolidated Subsidiaries Non Recourse to Parent Primary Obligations Operating Leases
Operating Leased Assets [Line Items]
Leases, initial terms					20 years
Number of lease renewal options				1
Renewal option period				5 years	10 years
Obligations of consolidated subsidiaries						$ 1,077	$ 233
Other current liabilities (liabilities held-for-sale)	0	46	46
Present value of net minimum lease payments associated with capital leases			$ 51

Composition of Rent Expense Associated with Operating Leases (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Leases [Abstract]
Minimum rentals	$ 143	$ 159	$ 188
Additional rentals	64	56	62
Operating leases, rent expense, total	$ 207	$ 215	$ 250

Commercial paper, average interest rate of 0.4% at December 31, 2014

The increases or decreases in lease payments that result from changes occurring after the inception of the lease in the factors (other than the passage of time) on which lease payments are based, except that any escalation of minimum lease payments relating to increases in construction or acquisition cost of the leased property or for increases in some measure of cost or value during the construction or preconstruction period, are excluded from contingent rentals. Contingent rentals also may include amounts for which the triggering events have not yet occurred or the specified targets for which have not yet been achieved (such as sales based percentage rent), but which events are considered probable of occurring or which specified targets are considered probable of being achieved.

+ References+ Details

Self-Insurance Reserve for Losses and Loss Adjustment Expenses (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Self-Insurance Reserve for Losses and Loss Adjustment Expenses [Roll Forward]
Balance at beginning of year	$ 362	$ 342
Less: reinsurance recoverable	(5)	(5)
Net balance at beginning of year	357	337
Incurred related to:
Current year	126	116
Prior year	(2)	8
Total incurred	124	124
Paid related to:
Current year	(24)	(25)
Prior year	(77)	(79)
Total paid	(101)	(104)
Net balance at end of year	380	357
Add: reinsurance recoverable	4	5
Balance at end of year	$ 384	$ 362

Self-Insurance Reserve for Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract]
Increase (decrease) in provision for unpaid loss and loss adjustment expenses, current year		$ 10
Increase (decrease) in provision for unpaid loss and loss adjustment expenses, prior years	(2)	8
Self-insurance reserve	384	362	342
Self-insurance reserve, current portion	120	120
Self-insurance reserve, long-term portion	$ 264	$ 242

Long-Term Debt (Detail) (USD $)

Dec. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Dec. 31, 2014

Commercial Paper

Dec. 31, 2013

Commercial Paper

Dec. 31, 2014

Series G, Senior Notes 5.8% Due November 10, 2015

Dec. 31, 2013

Series G, Senior Notes 5.8% Due November 10, 2015

Dec. 31, 2014

Series H, Senior Notes 6.2% Due June 15, 2016

Dec. 31, 2013

Series H, Senior Notes 6.2% Due June 15, 2016

Dec. 31, 2014

Series I, Senior Notes 6.4% Due June 15, 2017

Dec. 31, 2013

Series I, Senior Notes 6.4% Due June 15, 2017

Dec. 31, 2014

Series K, Senior Notes 3.0% Due March 1, 2019

Dec. 31, 2013

Series K, Senior Notes 3.0% Due March 1, 2019

Dec. 31, 2014

Series L, Senior Notes 3.3% Due September 15, 2022

Dec. 31, 2013

Series L, Senior Notes 3.3% Due September 15, 2022

Dec. 31, 2014

Series M Senior Notes 3.4% Due October 15, 2020

Dec. 31, 2013

Series M Senior Notes 3.4% Due October 15, 2020

Sep. 30, 2013

Series M Senior Notes 3.4% Due October 15, 2020

Dec. 31, 2014

Series N Senior Notes 3.1% Due October 15, 2021

Dec. 31, 2013

Series N Senior Notes 3.1% Due October 15, 2021

Debt Instrument [Line Items]

Senior Notes

$ 314,000,000

^[1]

$ 312,000,000

^[1]

$ 289,000,000

^[1]

$ 289,000,000

^[1]

$ 293,000,000

^[1]

$ 292,000,000

^[1]

$ 596,000,000

^[1]

$ 595,000,000

^[1]

$ 349,000,000

^[1]

$ 349,000,000

^[1]

$ 348,000,000

^[1]

$ 348,000,000

^[1]

$ 397,000,000

^[1]

$ 0

^[1]

1,072,000,000

834,000,000

$2,000 Credit Facility

Accrued expenses and other (liabilities held for sale)

123,000,000

180,000,000

Long-term debt

3,781,000,000

3,199,000,000

(46,000,000)

Less current portion

(324,000,000)

(6,000,000)

Long-term debt, noncurrent

3,457,000,000

3,147,000,000

Debt instrument, stated interest rate

5.80%

6.20%

6.40%

3.00%

3.30%

3.40%

3.10%

Senior Notes, face amount

316,000,000

289,000,000

293,000,000

600,000,000

350,000,000

400,000,000

Senior notes, effective interest rate

6.60%

6.30%

6.50%

4.40%

3.40%

3.60%

3.40%

Senior notes, weighted average interest rate

0.40%

Multicurrency revolving credit agreement, aggregate effective borrowings

$ 2,000,000,000

[1]	Face amount and effective interest rate are as of year-end 2014.

Long-Term Debt - Additional Information (Detail) (USD $)	12 Months Ended			3 Months Ended			3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012	Dec. 31, 2014 Series N Senior Notes 3.1% Due October 15, 2021	Sep. 30, 2013 Series M Senior Notes 3.4% Due October 15, 2020	Dec. 31, 2014 Series M Senior Notes 3.4% Due October 15, 2020	Mar. 31, 2013 Series J, Senior Notes matured February 15, 2013
Debt Instrument [Line Items]
Cash paid for interest, net of amounts capitalized	$ 79,000,000	$ 83,000,000	$ 83,000,000
Senior Notes, face amount				400,000,000	350,000,000	350,000,000
Debt instrument, stated interest rate				3.10%	3.40%	3.40%
Proceeds from debt, net of issuance costs				394,000,000	345,000,000
Payment made to retire debt at maturity							411,000,000
Multicurrency revolving credit agreement, aggregate effective borrowings	$ 2,000,000,000

Debt Principal Payments (Net of Unamortized Discounts) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
2015	$ 324
2016	297
2017	301
2018	1,082
2019	606
Thereafter	1,171
Long-term debt	$ 3,781	$ 3,199

Composition of Other Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2014

Dec. 31, 2013

Acquired Finite-Lived Intangible Assets [Line Items]

Accumulated amortization

$ (461)

$ (423)

Contract acquisition costs and other, net

1,274

1,127

Acquired Indefinite-lived Intangible Assets [Line Items]

Total Intangible Assets

1,351

^[1]

1,131

^[1]

Brand

Acquired Indefinite-lived Intangible Assets [Line Items]

Indefinite-lived Intangible Assets Acquired

Contract acquisition costs and other

Acquired Finite-Lived Intangible Assets [Line Items]

$ 1,735

$ 1,550

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.

Carrying Amount of Goodwill (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 948	$ 928	$ 928
Accumulated impairment losses	(54)	(54)	(54)
Goodwill, net	$ 894	$ 874	$ 874

Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Finite-Lived Intangible Assets [Line Items]
Aggregate amortization expense of intangible assets	$ 64	$ 68	$ 54
Estimated aggregate future amortization expense of intangible assets for 2015	58
Estimated aggregate future amortization expense of intangible assets for 2016	58
Estimated aggregate future amortization expense of intangible assets for 2017	58
Estimated aggregate future amortization expense of intangible assets for 2018	58
Estimated aggregate future amortization expense of intangible assets for 2019	$ 58
Lower Limit
Finite-Lived Intangible Assets [Line Items]
Range of amortization life of intangible assets	15 years
Upper Limit
Finite-Lived Intangible Assets [Line Items]
Range of amortization life of intangible assets	30 years

Composition of our Property and Equipment Balances (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,378	$ 2,448
Accumulated depreciation	(918)	(905)
Property and equipment, net	1,460	1,543
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	457	535
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	781	786
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	775	789
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 365	$ 338

Property and Equipment - Additional Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014 hotel	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Property, Plant and Equipment [Line Items]
Depreciation expense		$ 135	$ 107	$ 93
Property and equipment, net		1,460	1,543
Number of hotels	3
International Operations \| Total segment
Property, Plant and Equipment [Line Items]
Property and equipment, net		291	238
Property and Equipment
Property, Plant and Equipment [Line Items]
Interest capitalized		33	31	27
Impairment charge		25
Lower Limit
Property, Plant and Equipment [Line Items]
Estimated useful lives		3 years
Upper Limit
Property, Plant and Equipment [Line Items]
Estimated useful lives		40 years
Reimbursed Costs
Property, Plant and Equipment [Line Items]
Depreciation expense		$ 51	$ 48	$ 45

The aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).

+ References+ Details

Composition of our Notes Receivable Balances (Net of Reserves) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Senior, mezzanine, and other loans	$ 242	$ 178
Current notes receivable	(27)	(36)
Notes receivable, noncurrent	$ 215	$ 142

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

An amount representing an agreement for an unconditional promise by the maker to pay the Company (holder) a definite sum of money within one year from the balance sheet date (or the normal operating cycle, whichever is longer), net of any write-downs taken for collection uncertainty on the part of the holder. Such amount may include accrued interest receivable in accordance with the terms of the debt. The debt also may contain provisions and related items including a discount or premium, payable on demand, secured, or unsecured, interest bearing or noninterest bearing, among a myriad of other features and characteristics. This amount does not include amounts related to receivables held-for-sale.

+ References+ Details

Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts and Interest Rates) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
2015	$ 27
2016	72
2017	2
2018	3
2019	1
Thereafter	137
Senior, mezzanine, and other loans	$ 242	$ 178
Weighted average interest rate at year-end 2014	6.10%
Range of stated interest rates at year-end 2014, minimum	0.00%
Range of stated interest rates at year-end 2014, maximum	9.00%

Activity Related to "Senior, mezzanine, and other loans" Notes Receivable Reserve (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 90	$ 79	$ 78
Additions			2
Reversals		(2)	(1)
Write-offs	(45)		(1)
Transfers and other	5	13	1
Ending balance	$ 50	$ 90	$ 79

Notes Receivable - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012	Dec. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, unamortized discounts, balance	$ 25	$ 12
Investment in impaired loans	63	99
Notes receivable reserve representing an allowance for credit losses	50	90	79	78
Investment in impaired loans with no related allowance for credit losses	13	9
Average investment in impaired loans	81	96	94
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mezzanine loan	85
Notes receivable, unamortized discounts, balance	$ 15

Fair Value of Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Jun. 30, 2013 hotel	Dec. 31, 2014 hotel
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Proceeds from sale of investment	$ 22
Amortized cost basis	14
Realized gain from sale of investment	8
Held-to-maturity securities, amortized cost		77
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of our marketable securities		44
Mandatorily Redeemable Preferred Equity Ownership Interest \| Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities	65
Number of hotels	3	3
Held-to-maturity securities, fair value		$ 87
Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial paper, maturity term (generally 30 days or less)		30 days

Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2014

Dec. 31, 2013

Senior, mezzanine, and other loans

$ 215

$ 142

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

(891)

^[1]

(912)

^[1]

Carrying Amount

Senior, mezzanine, and other loans

215

142

Marketable securities and other debt securities

111

Total noncurrent financial assets

259

253

Senior Notes

(2,272)

(2,185)

Commercial paper

(1,072)

(834)

Other long-term debt

(108)

(123)

Total noncurrent financial liabilities

(57)

(50)

(3,509)

(3,192)

Fair Value

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Senior, mezzanine, and other loans

214

145

Marketable securities and other debt securities

111

Total noncurrent financial assets

258

256

Senior Notes

(2,370)

(2,302)

Commercial paper

(1,072)

(834)

Other long-term debt

(122)

(124)

Total noncurrent financial liabilities

(57)

(50)

$ (3,621)

$ (3,310)

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.

Shareholders' (Deficit) Equity - Additional Information (Detail) (USD $)	Dec. 31, 2014
Equity [Abstract]
Class A Common Stock, authorized (in shares)	800,000,000
Class A Common Stock, par value (in USD per share)	$ 0.01
Preferred stock, authorized (in shares)	10,000,000
Preferred stock, no par value
Class A Common Stock, outstanding (in shares)	280,000,000
Preferred stock, outstanding (in shares)	0

Accumulated Other Comprehensive Income Activity (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassifications

$ (44)

$ (48)

(28)

Amounts reclassified from accumulated other comprehensive loss

(6)

(26)

Other comprehensive income (loss), before reclassifications, other derivative instrument adjustments, deferred tax

(70)

(44)

(1)

Other comprehensive income (loss), before reclassifications, unrealized gains on available-for-sale securities, deferred tax

Foreign Currency Translation Adjustments

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassifications

(31)

(32)

(37)

(41)

Amounts reclassified from accumulated other comprehensive loss

(41)

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

(72)

(31)

(32)

Other Derivative Instrument Adjustments

Other comprehensive income (loss) before reclassifications

(19)

^[1]

(19)

^[1]

(18)

^[1]

^[1]

(2)

^[1]

Amounts reclassified from accumulated other comprehensive loss

^[1]

^[1]

(1)

^[1]

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

(9)

^[1]

(19)

^[1]

(19)

^[1]

Unrealized Gains (Losses) on Available-For-Sale Securities

Other comprehensive income (loss) before reclassifications

^[2]

^[2]

Amounts reclassified from accumulated other comprehensive loss

^[2]

(6)

^[2]

^[2]

(1)

^[2]

$ 11

^[2]

$ 6

^[2]

$ 7

^[2]

[1]	We present the portions of other comprehensive income (loss) before reclassifications that relate to other derivative instrument adjustments net of zero deferred taxes for 2014 and 2013, and deferred tax benefits of $1 million for 2012.
[2]	We present the portions of other comprehensive income (loss) before reclassifications that relate to unrealized gains (losses) on available-for-sale securities net of deferred taxes of $3 million for 2014, $2 million for 2013 and $4 million for 2012.

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References+ Details

Reclassification out of Accumulated Other Comprehensive Income (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Income before income taxes

$ (115)

^[1]

$ (120)

^[1]

$ (137)

^[1]

1,088

897

849

Provision for income taxes

(335)

(271)

(278)

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

197

192

172

151

^[2]

160

^[2]

179

^[2]

136

^[2],[3]

753

626

^[2]

571

Reclassification out of Accumulated Other Comprehensive Income | Other Derivative Instrument Adjustments

Franchise fees

Income before income taxes

(5)

(4)

Provision for income taxes

$ (2)

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.
[2]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[3]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Business Segments - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

hotel

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

segment

Dec. 31, 2013

Dec. 28, 2012

Number of operating segments

Number of business segments

$ 3,559

$ 3,460

$ 3,484

$ 3,293

$ 3,219

^[1]

$ 3,160

^[1]

$ 3,263

^[1]

$ 3,142

^[1],[2]

$ 13,796

$ 12,784

^[1]

$ 11,814

1,088

897

849

Number of hotels

Property and Equipment

Impairment charge

Total segment

13,540

^[3]

12,518

^[3]

11,526

^[3]

Total segment | International Operations

2,518

2,149

1,912

327

269

283

Total segment | Asia

Total segment | Europe

Total segment | Middle East And Africa

Total segment | Caribbean and Latin America

Total segment | Canada

$ 32

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[2]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.
[3]	Revenues attributed to operations located outside the United States were $2,518 million in 2014, $2,149 million in 2013, and $1,912 million in 2012.

Segment Reporting, Revenue Reconciling Item [Line Items]

The aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).

+ References+ Details

Revenues (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Segment Reporting, Revenue Reconciling Item [Line Items]

$ 3,559

$ 3,460

$ 3,484

$ 3,293

$ 3,219

^[1]

$ 3,160

^[1]

$ 3,263

^[1]

$ 3,142

^[1],[2]

$ 13,796

$ 12,784

^[1]

$ 11,814

Total segment

Segment Reporting, Revenue Reconciling Item [Line Items]

13,540

^[3]

12,518

^[3]

11,526

^[3]

Total segment | North American Full-Service Segment

Segment Reporting, Revenue Reconciling Item [Line Items]

8,323

7,978

7,276

Total segment | North American Limited-Service Segment

Segment Reporting, Revenue Reconciling Item [Line Items]

2,962

2,583

2,456

Total segment | International Segment

Segment Reporting, Revenue Reconciling Item [Line Items]

2,255

1,957

1,794

Other unallocated corporate

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ 256

$ 266

$ 288

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[2]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.
[3]	Revenues attributed to operations located outside the United States were $2,518 million in 2014, $2,149 million in 2013, and $1,912 million in 2012.

Net Income (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Interest expense and interest income

$ (85)

$ (97)

$ (120)

Income taxes

(335)

(271)

(278)

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

197

192

172

151

^[1]

160

^[1]

179

^[1]

136

^[1],[2]

753

626

^[1]

571

Total segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

1,393

^[3]

1,197

^[3]

1,165

^[3]

Total segment | North American Full-Service Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

524

490

442

Total segment | North American Limited-Service Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

574

479

472

Total segment | International Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

295

228

251

Other unallocated corporate

$ (220)

$ (203)

$ (196)

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[2]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.
[3]	Segment profits attributed to operations located outside the United States were $327 million in 2014, $269 million in 2013, and $283 million in 2012. The 2014 segment profits consisted of segment profits of $99 million from Asia Pacific, $95 million from Europe, $74 million from the Caribbean and Latin America, $32 million from Canada, and $27 million from the Middle East and Africa.

Incentive management fees

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Goodwill (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Segment Reporting Information [Line Items]
Goodwill	$ 948	$ 928	$ 928
Accumulated impairment losses	(54)	(54)	(54)
Goodwill	894	874	874
Total segment \| North American Full-Service Segment
Segment Reporting Information [Line Items]
Goodwill	392	392	392
Accumulated impairment losses	0	0	0
Goodwill	392	392	392
Total segment \| North American Limited-Service Segment
Segment Reporting Information [Line Items]
Goodwill	125	125	125
Accumulated impairment losses	(54)	(54)	(54)
Goodwill	71	71	71
Total segment \| International Segment
Segment Reporting Information [Line Items]
Goodwill	431	411	411
Accumulated impairment losses	0	0	0
Goodwill	$ 431	$ 411	$ 411

Capital Expenditures (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Segment Reporting Information [Line Items]
Capital expenditures	$ 411	$ 296	$ 437
Total segment
Segment Reporting Information [Line Items]
Capital expenditures	343	246	372
Total segment \| North American Full-Service Segment
Segment Reporting Information [Line Items]
Capital expenditures	251	145	257
Total segment \| North American Limited-Service Segment
Segment Reporting Information [Line Items]
Capital expenditures	5	8	19
Total segment \| International Segment
Segment Reporting Information [Line Items]
Capital expenditures	87	93	96
Other unallocated corporate
Segment Reporting Information [Line Items]
Capital expenditures	$ 68	$ 50	$ 65

Financial Data Resulting from Transactions with Related Parties, Income Statement Data (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Base management fees

$ 672

^[1]

$ 621

^[1]

$ 581

^[1]

302

^[1]

256

^[1]

232

^[1]

Cost reimbursements

11,055

^[1]

10,291

^[1]

9,405

^[1]

Depreciation, amortization and other

3,559

3,460

3,484

3,293

3,219

^[2]

3,160

^[2]

3,263

^[2]

3,142

^[2],[3]

13,796

12,784

^[2]

11,814

Reimbursed costs

(11,055)

^[1]

(10,291)

^[1]

(9,405)

^[1]

(148)

^[1]

(127)

^[1]

(102)

^[1]

General, administrative, and other

(659)

^[1]

(649)

^[1]

(582)

^[1]

Related Party Transactions

Base management fees

Incentive management fees

Owned, leased, and other revenue

Cost reimbursements

226

236

315

Depreciation, amortization and other

250

255

349

Reimbursed costs

(226)

(236)

(315)

(2)

General, administrative, and other

(2)

(3)

Gains and other income

Equity in earnings (losses)

Interest income

$ 6

$ (5)

$ (13)

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.
[2]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[3]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.

Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2014

Dec. 31, 2013

Current assets

Accounts and notes receivable, net

$ 1,100

^[1]

$ 1,081

^[1]

109

^[1]

1,274

1,127

224

^[1]

222

^[1]

803

878

Other noncurrent assets

270

^[1]

332

^[1]

Current liabilities

(655)

^[1]

(629)

^[1]

Accounts and notes receivable, net

(891)

^[1]

(912)

^[1]

Related Party Transactions

Current assets

210

207

Other noncurrent assets

Current liabilities

Accounts payable

(10)

(4)

(20)

(9)

$ (3)

$ (2)

[1]	See Footnote No. 17, “Related Party Transactions,” to our Consolidated Financial Statements for disclosure of related party amounts.

Equity Method Investment Summarized Financial Information, Income Statement (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 28, 2012
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Sales	$ 752	$ 727	$ 902
Net income (loss)	$ 38	$ 11	$ (4)

The amount of net income (loss) reported by an equity method investment of the entity.

+ References+ Details

Equity Method Investment Summarized Financial Information, Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions [Abstract]
Assets (primarily comprised of hotel real estate managed by us)	$ 1,499	$ 1,832
Liabilities	$ 1,287	$ 1,482

The amount of assets reported by an equity method investment of the entity.

+ References+ Details

Revenue, Major Customer [Line Items]

The amount of liabilities reported by an equity method investment of the entity.

+ References+ Details

Relationship with Major Customer - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

Revenue, Major Customer [Line Items]

$ 3,559

$ 3,460

$ 3,484

$ 3,293

$ 3,219

^[1]

$ 3,160

^[1]

$ 3,263

^[1]

$ 3,142

^[1],[2]

$ 13,796

$ 12,784

^[1]

$ 11,814

Host Hotels & Resorts Inc

Number of lodging properties operated under long-term agreements of affiliated unconsolidated partnerships

124

Revenue, Major Customer [Line Items]

1,927

2,016

2,246

Host Partnerships

Number of lodging properties operated under long-term agreements of affiliated unconsolidated partnerships

Quarterly Financial Information Disclosure [Abstract]

$ 106

$ 87

$ 75

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[2]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.

Supplementary Data - Quarterly Financial Data - Unaudited (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 28, 2012

$ 3,559

$ 3,460

$ 3,484

$ 3,293

$ 3,219

^[1]

$ 3,160

^[1]

$ 3,263

^[1]

$ 3,142

^[1],[2]

$ 13,796

$ 12,784

^[1]

$ 11,814

Operating income

291

298

316

254

238

^[1]

245

^[1]

279

^[1]

226

^[1],[2]

1,159

988

^[1]

940

Diluted earnings per share (in USD per share)

$ 197

$ 192

$ 172

$ 151

^[1]

$ 160

^[1]

$ 179

^[1]

$ 136

^[1],[2]

$ 753

$ 626

^[1]

$ 571

$ 0.68

$ 0.65

$ 0.64

$ 0.57

$ 0.49

^[1]

$ 0.52

^[1]

$ 0.57

^[1]

$ 0.43

^[1],[2]

$ 2.54

$ 2.00

^[1]

$ 1.72

[1]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[2]	Beginning in 2013, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 first quarter included the period from December 29, 2012 through March 31, 2013.

+ References+ Details